THE COMMISSIONER OF INCOME TAX KOCHI vs. M/S.ABAD FISHERIES, KOCHI

JUDGMENT C.N. Ramachandran Nair, J.

These appeals are filed by the Revenue against the order of the Income Tax Appellate Tribunal disposing of assessee's appeals for the assessment years 1986-87 and 1987-88. The assessee was engaged in exports and claimed the benefit of deduction on export profits under Section 80HHC. The assessing officer without verifying the break up details of profit which included profits on sale of imported goods, accepted the return by passing orders under Section 143(1)(a) of the Income Tax Act which provides for summary assessment based on return filed. Even though the Commissioner issued suo-motu order revising the summary assessment issued under Section 143(1)(a) of the Act, the Tribunal cancelled the same on the ground that there were no mistakes or illegality in the order issued by the officer under Section 143(1)(a) of the Act. We are in agreement with the finding of the Tribunal, because the section prior to the amendment provided for rectification of arithmetical errors in the return or accounts or documents accompanying it and there were no provisions for disallowing -2- even prima facie inadmissible deductions claimed by the assessee. Since the order issued under Section 143(1)(a) of the Act was free from any defect or illegality, the Commissioner has no juri iction to revise the intimation so issued under Section 253 of the Act.

We, therefore, dismiss the appeals upholding the order of the Tribunal. (C.N. Ramachandran Nair, Judge.) (T.R. Ramachandran Nair, Judge.) kav/ -3- C.N. Ramachandran Nair & T.R. Ramachandran Nair, JJ. - - - - - - - - - - - - - - - - - - - - - - I.T.A. Nos.26 & 29 of 2002 - - - - - - - - - - - - - - - - - - - - - - JUDGMENT 6th February, 2008.