ABAD ENTERPRISES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Income-tax Appellate Tribunal, Cochin Bench, has referred the following questions of law for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE assessee filed a return of income for the assessment year 1989-90 declaring a total income of Rs. 12,290. THE return was processed by the Assessing Officer under Section 143 Section (a) of the Income-tax Act, (hereinafter referred to as "the Act"), and he determined the total income at Rs. 2,68,000. In processing the return, the Assessing Officer made a prima facie adjustment of Rs. 2,55,705 in respect of the assessee's claim for deduction under Section 80HHC of the Act. An intimation under Section 143 Section (a) of the Act was issued to the assessee. THE assessee, thereupon, filed a petition for rectification by invoking Section 154 of the Act in regard to deduction disallowed under Section 80HHC of the Act. THE assessee contended that the addition made by the Assessing Officer was beyond the scope of processing the assessment under Section 143 Section (a) of the Act. THE Assessing Officer rejected that application. An appeal filed by the assessee was dismissed by the Commissioner of Income-tax (Appeals), who held that the Assessing Officer was justified in rejecting the petition for rectification. THE assessee, thereupon, filed a further appeal before the Income-tax Appellate Tribunal. THE Tribunal affirmed the decision of the Commissioner of Income-tax (Appeals) and dismissed the appeal filed by the assessee. Claiming that questions of law referred to hereinabove arose out of the decision of the Tribunal, the assessee sought a reference of those questions by invoking Section 256(1) of the Act. THE Tribunal has thereupon referred those questions for the opinion of this court.

(3.) WE shall here set out the relevant provision :