COMMISSIONER OF INCOME-TAX Vs. MAHESHKUMAR A. RATHOD

JUDGEMENT

(1.) THE following question has been referred for the opinion of this court: Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the issue being debatable, the Assessing Officer was not justified in disallowing deduction claimed by way of adjustment under Section 143(1)(a) of the Income -tax Act, 1961?

(2.) AT the outset, Mr. M.R. Bhatt, learned Counsel for the Revenue, fairly admits that the issue is covered against the Revenue by a judgment of this court dated November 2, 2006, in CIT v. Manubhai M. Patel in : [2008]296ITR143(Guj) .

(3.) WHEN the issue relating to deduction or disallowance of deductions is debatable, the Assessing Officer cannot make any adjustment in an order under Section 143(1)(a). We, therefore, see no infirmity in the order of the Tribunal. Accordingly, we answer the question referred in favour of the assessee and against the Revenue. The reference stands disposed of.