2002 (2) TMI 99

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....is an assessee, as defined under section 2(7) of the Act. He is assessed as an individual in respect of his income earned from business as also from other sources. The petitioner filed his return (annexure A) for the assessment year 1992-93, i.e., for the period April 1, 1991 to March 31, 1992. In the return, the petitioner claimed several deductions such as under sections 80L, 80CCB, 80CCA, 80HHC and 80D in addition to other claims. The Assessing Officer processed the return of the petitioner under section 143(1)(a) ibid and made prima facie adjustment in so far as the deduction claimed by the petitioner under section 80HHC ibid was concerned by his order dated April 6, 1993 (annexure B at page 12 of the petition). The petitioner then on r....

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....agdiya, learned counsel for the petitioner; and Shri Patankar, learned counsel for the respondent. The submission of learned counsel for the petitioner was that once the prima facie adjustment made in section 143(1)(a) of the Act by the Assessing Officer in relation to deductions under section 80HHC are held to be bad right up to the Tribunal, then, in such circumstance, no notice under section 147/148 ibid for the same cause could be issued by the Assessing Officer. In other words, the submission was when the issue in question for which the impugned notice is sent was debated in section 143(1)(a) proceedings and the same having been decided in favour of the assessee (petitioner) by the Commissioner of Income-tax (Appeals) and then by th....

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....the basis of material on record stated in the return. In case if the Assessing Officer feels that particular adjustment in relation to any claim is prima facie permissible then he after making the same shall intimate the assessee. In case the Assessing Officer feels that it is not so prima facie possible then the Assessing Officer has to issue notice to the assessee before making the adjustment of that particular claim for which he was contemplating to exercise his powers under section 143(1)(a) ibid. In the present case, once it was held that the Assessing Officer was not justified under section 143(1)(a) while making adjustment pertaining to deduction claimed by the petitioner under section 80HHC, then the Assessing Officer is entitled....