1978 (6) TMI 65

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....nd disposed of by this common order. 2. These appeals, filed by the Revenue, are directed against the order of the AAC holding that the remedy of s. 154 is open to the assessee even if the assessment is made under s. 143(1) and further holding that the assessee was entitled to relief under s. 154 and directing the ITO to rectify the assessments for the asst. yrs. 1974-75 and 1975-76. 3. The ....

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.... did not know whether his case had been disposed of under s. 143(3) or s. 143(1). It is stated that the assessee had made rectification applications in Form No. 6A seeking assessments under s. 143(3) for both the years. But application in Form No. 6A appears to have been misplaced with the result that the ITO only dealt with the rectification application and declined to allow the above items of ex....

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....n the nature of entertainment expenditure falling under the purview of s. 37(2B). The A.A.C further observed that while passing an order under s. 143(1), the ITO was competent to add back only the amounts which prima facie were disallowable and as the items of expenditure claimed by the assessee were not inadmissible without further inquiry, it was not open to the ITO to add back these items under....

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....rival submissions of both the sides and we see no reason to interfere with the order passed by the A.A.C as it is clear from the order of the A.A.C that the assessee had filed both rectification applications as well as applications in Form No. 6A seeking the assessments under s. 143(3), after he had got from the ITO demand notices and challans for both the years under appeal. It appears that the a....