TaxTMI 
TaxTMI 
2024 (5) TMI 705
X X X X Extracts X X X X
X X X X Extracts X X X X
.... order dated 19.02.1999 levying Additional tax of Rs. 57,481, with reference to the loss shown in the "original return" was valid in the eyes of law, even though such a 'return' had been become non-existence by the reason of revision of the same and even notice under Section 143(2) had been issued by the Assessing Officer with reference to the 'revised return'? (iii) WHETHER on a true and correct interpretation of Section 253 of the Act, the Tribunal was legally correct in drawing an adverse inference about the assessee's bonafide in filing the revised return (withdrawing its claim for deduction of interest payable to UPFC) and inter-alia on that basis in upholding the levy of 'Additional tax' under Section 143(1A)? 4. Submission of learned counsel for assessee is, the original intimation issued under Section 143(1)(a) dated 28.02.1996 stood washed out and no legal effect may have been caused occasioned by any declaration made by the assessee in his original return dated 30.11.1995, for reason of revised return dated 06.09.1996 filed by the assessee upon the proceeding being remitted to the Assessing Authority by the Commissioner of Income Tax (Appeal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the return and the supporting documents may be allowed if it be admissible, though not claimed. Similarly, a loss carried forward or a deduction or allowance or relief claimed in the return that may prima facie be inadmissible on the basis of information available to the Assessing Officer in the return or accounts or documents appended thereto, may be disallowed. Upon such exercise made, the Assessing Officer would issue a notice of demand, in terms of Section 156 of the Act. That course was adopted in the present case. 8. Thus, the assessee's return for AY 1995-96 disclosing loss Rs. 11,79,190/- was processed under Section 143(1)(a) of the Act. On 28.02.1996, the Assessing Officer disallowed interest payments claimed by the assessee in its return, to the tune of Rs. 6,69,792/-. 9. Again under the scheme of the Act, since that processing of the return gave rise to a notice of demand, that itself gave right of appeal to the assessee under Section 246(2) of the Act. That appeal was allowed by the C.I.T. (Appeals) on 16.07.1996. 10. Perusal of that order reveals that the C.I.T. (Appeals) was of the view that the assessee ought to have been granted opportunity of hearing, before his....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Act, would apply and remain confined to situations covered under Section 143(1)(a) of the Act. For ready reference provision of Section 143(1)(a) read: "143.(1)(a) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, - (i) if any tax or interest is found due on the basis of such 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 (ii) if any refund is due on the basis of such return, it shall be granted to the assessee: 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 forward, deduction, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve for consideration despite subsequent assessment made, we are unable to accept the submission being advanced by learned counsel for the revenue. It is a sine qua non under the Act, that an assessee may be assessed only once. Summary assessment may arise and survive and the consequence of its non-compliance noted under Section 143(1)(a) of the Act may also survive for consideration for the purpose of invocation of Section 143(1A), in a case where the intimation issued under Section 143(1)(a) may not have been set aside. Those would be cases where despite issuance of intimation under Section 143(1)(a) of the Act, notice may be issued to an assessee in terms of Section 143(2) of the Act. If assessment proceeding had thus arisen in linear progression of the assessment proceedings, different considerations would arise. However, in these facts, material difference had arisen. Here, intimation issued under Section 143(1)(a) itself was set aside by the C.I.T. (Appeals) vide his order dated 16.07.1996. Once the intimation stood set aside, it could never be said with any conviction that any adjustment made under Clause a(1) of section 143 survived. Once the 'object' i.e. the intimation sto....