TaxTMI 
TaxTMI 
2001 (2) TMI 24
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.... been added to the aforesaid disclosed income by making additions on account of the income allegedly received by minor children of the assessee under section 64(1A) of the Act of 1961. The assessee has challenged the vires of section 143(1)(a), inter alia, on the ground that it permits the Assessing Officer to make adjustments to the demand of the assessee without notice to him and without hearing and also on the merits that the adjustments made under section 143(1)(a) by the Assessing Officer do not per se fall within the ambit of section 143(1)(a). Having heard the learned counsel for the parties, we are of the opinion that this petition must succeed on the short ground that the adjustment made by the Assessing Officer on the face o....
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....ich are thought necessary by the Assessing Officer to be made in the return submitted by him on the basis of material emanating from the return itself. In case the assessee is aggrieved by such adjustments which are required to be intimated to him, he is entitled to make an application within one month from the date of receipt of notice of demand issued in consequence of such assessment under section 143(1)(a) to the very same Assessing Officer raising objection to such adjustment. On receiving such application, the Assessing Officer is bound to take recourse to regular assessment by issuing him notice of regular assessment under sub-section (2) of section 143. Thus, against the alleged uncalled for adjustments made in the return, on an app....
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....ded, it further envisages its intimation to the assessee of such adjustments and also envisages the right of the assessee to object to such adjustments by making an application within one month from the date of service of such intimation. On the raising of such objection the assessing authority is enjoined to take recourse to regular assessment. This procedure in our opinion amply safeguards the interest of an affected assessee to have an opportunity to raise objection and to be heard in that regard before any assessment becomes final against him, intimation of adjustments made serving the purpose of show cause notice. Therefore, section 143(1)(a) cannot be held bereft of the element of reasonableness and to suffer from vice of arbitrarines....
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.... any, for the earlier assessment year or years." The aforesaid clause (b) existed as aforesaid during the relevant assessment year in question. A perusal of the section itself goes to show that no authority has been conferred on the Assessing Officer to make any adjustments by way of making additions under section 64 of any income not discharged by the assessee to be his own. Obviously, the Assessing Officer has transgressed his authority under sub-section (1) of section 143 in making addition of the minor's income in the income of the assessee without notice to him and without taking recourse to regular assessment proceedings. Whether the income of any other person is includible in the income of the assessee under section 64 is not a ma....