TaxTMI 
TaxTMI 
2007 (9) TMI 271
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Act ? 2. Whether on the facts and in the circumstances of the case, the Tribunal was correct in confirming the said intimation in spite of the Board circular reported in [1994] 209 ITR (st.) 75 ?" 2. The assessee owns an immovable property at No.7, Arulambal Street, T.Nagar, Chennai. It is stated that the same was used for self-occupation and hence, there was no income assessable under the head "income from house property". The assessee had taken the property at 532, Mount Road, Chennai, on rental basis. This had been sub-let to a number of other concerns from whom rents were collected. In the return filed for the Assessment Year 1996-97, the assessee admitted a rental income of Rs.1,20,000/- and deducted therefro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....urt. 5. Learned counsel for the assessee pointed out that the property at Arulambal street was a self-occupied property owned by the assessee. The assessee claimed that he had paid Rs.1,08,000/- towards rent for the property at Mount Road on lease and that he had received the rent on sub-lease at Rs.1,20,000/- and therefore, the assessee returned the balance as income from the house property. Learned counsel for the assessee stated that in the return of income from the property, it had been wrongly stated by inadvertence that the same was from the property of the assessee at Arulambal Street which was under self-occupation. The details filed along with the return clearly showed that the said income was earned in respect of the Moun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch return, after adjustment of any tax deducted at source, any advance tax paid and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; and… Provided that in computing the tax or interest payable by, or refundable to, the assessee, the following adjustments shall be made in the income or loss declared in the return, namely:- (i) any arithmetical errors in the return, accounts or documents accompanying it shall be rectified; (ii) any loss carried forw....
X X X X Extracts X X X X
X X X X Extracts X X X X
....things disclosed in the return along with the documents. 12. The Central Board of Direct Taxes issued a circular elaborating the scope of a prima facie disallowances under Section 143(1)(a) in Circular No.689 dated 24.8.1994 (see [1994] 209 ITR (Statute) 75). The circular touches on the scope of prima facie disallowance under Section 143(1)(a) and has given types of claims in respect of which prima facie disallowances shall be made. The circular gives the guidelines as to the matters which call for prima facie disallowance. A perusal of the examples given clearly show that if the information available in the return of income or accounts or documents clearly show the correct facts, then the claim of the assessee should not be reject....