TaxTMI 
TaxTMI 
2002 (6) TMI 160
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....g Officer under section 143(1) of the IT. Acton 17-7-2000 on the basis of the returned total income of Rs. 1,17,470. Subsequently, the Assessing Officer found that the assessee claimed rebate under section 88 of the IT. Act from the income-tax payable in respect of interest of Rs. 35,336 credited to the PPF A/c of the assessee. The Assessing Officer issued notice under section 154 on 23-4-2001 proposing to withdraw this rebate on the ground that the same was not allowable under section 88. After considering the submissions made by the assessee, the Assessing Officer passed the impugned order under section 154 of the IT Act withdrawing the rebate. The Assessing Officer's order was confirmed by the learned CIT(A). 3. The learned counsel app....
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....cope of section 154 of the IT. Act. 4. The learned D.R. submitted that under the statutory provisions of section 88, no rebate is admissible in respect of interest credited to the PPF A/c. The assessee claimed such rebate and the returned was processed and intimation issued under section 143(1). It is submitted that in view of the clear provisions of law, there was a mistake apparent from record in the intimation in as much as wrong rebate was allowed, the Assessing Officer had jurisdiction to assume his powers under section 154 of the I.T. Act so as to rectify the mistake. 5. We have given a careful consideration to the rival submissions. The issue involves an interesting legal issue pertaining to interpretation of the provisions of sect....
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....der section 143(1). In other words, the Assessing Officer, under section 143(1) has no option but, to accept the income returned by the assessee. The question arises as to whether such wrong claim, rebate for deduction claimed by the assessee against the provisions of law can be withdrawn under section 154 of the Income-tax Act. We are inclined to agree with the proposition of the Ld. Counsel for the assessee that if the Assessing Officer has no power to do something at the time of passing an order, he cannot assume such power by invoking the provisions of section 154 of the Income-tax Act. The learned counsel has also relied upon the order of ITAT Hyderabad Bench in the case of Anam Machinery Fabricators Ltd. v .ITO [1994] 49 ITD 617. In t....
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....the returns in the above manner leaving very little time for other important works. The ever increasing number of returns also will make such processing of returns more time consuming. In view of the above it is proposed that the present provisions contained in section 143(1) or 143(1A) or 143(1B) are to be modified to do away with prima facie adjustments, additional tax and issue of intimations in all cases. Filing the return by itself would complete the process of assessment limiting its scope to raise demand and issue refund on the basis of the return filed. Except for issuing intimations where any sum is payable by the assessee or refund is due to him, the acknowledgement shall be deemed to be an intimation. It is also proposed to amend....