TaxTMI 
TaxTMI 
2022 (3) TMI 1236
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....during the year under consideration declared her receipts at Rs. 32, 40,000/- and offered to tax an income of Rs. 14, 66,462/-. However, while processing the return under section 143(1) (a), the assessing officer at CPC, Bangalore computed the income at Rs. 32, 48,462/-. Ignoring provisions as provided under section 44AD of the I.T. Act, 1961. The assessee contested the computation of income before the first appellate authority. The first appellate authority, however, upheld the order of the assessing officer. 4. Further aggrieved, the assessee is in appeal before the Tribunal. 5. The Ld.AR of the assessee before us disputed that the assessee was not a professional. The Ld.AR of the assessee pleaded that the income returned may be maintained, as the assessee is not a professional, hence entitled to file her return u/s. 44AD of the I.T. Act, 1961. 6. The Ld. DR, on the other hand, relied upon the order of authorities below. 7. We have considered the rival submissions and perused materials available on record. Provisions of section 143(1) (a) reads as below:- "143. (1) where a return has been made under section 139, or in response to a notice under sub-section (1) of section 14....
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....assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax 86[, interest or fee] is payable by, or no refund is due to, him: Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made." From the reading of the above section, it is very much clear that as per First Proviso to this section, it is imperative on the part of the assessing officer making the adjustment to give intimation to the assessee of such adjustments either in writing or in electronic mode. From the record before us it is not clear whether such intimation u/s. 143(1)(a) was passed after due opportunity of 30 days to the assessee or not. The assessing officer is under no obligation to accept the return of income filed by taking recourse to section 143(1)(a) as he is empowered to reject/modify the claim made in the return by resorting to the provisions of sec....
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....section 143(1)(a)(iii). The Court observed that there is only one option available to the Assessing Officer whereby he can require the assessee to furnish the proof by issuing a notice under section 143(2). Unless he is called upon to produce documents, books of account or other evidence in support of his claims by issuance of a notice to him, there is no statutory requirement for him to furnish the same. Thus, in genuine cases, where the law does not require the furnishing of any evidence along with the return of income, the department should not invoke the provisions of section 143(1)(a) for disallowing a claim for want of evidence. So, in the light of discussion above we hold the action of A.O. /CPC u/s. 143(1) (a) bad in law and not sustainable. 10. We find that the case of the Revenue seems to be that since the clients had deducted tax at source u/s.194J of the Act while making payment of Consultancy fees to the assessee, the assessee is to be treated as one engaged in the profession of Consultancy and not in the business of rendering Consultancy. One more point of the Revenue to conclude that assessee is engaged only in profession and not in business is that Consultancy is ....
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....ad been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account 87[or through such other electronic mode as may be prescribed88] during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year.] (2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed. 89[***] (3) The written down value of any asset of an eligible business shall be deemed to have been calculated as if the eligible assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years. 90[(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of....