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NOVEMBER 28, 2006 Section 143 of the Income-tax Act, 1961 - Assessment - Prima facie adjustment - Whether when issue relating to deduction or disallowance of deduction is debatable, Assessing Officer cannot make any adjustment in an order under section 143(1)(a) - Held, yes CASE REFERRED TO CIT v. Manubhai M. Patel [2008] 296 ITR 143 (Guj.) [Para 2]. JUDGMENT 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 of this Court in CIT v. Manubhai M. Patel [2008] 296 ITR 143 . 3. This Court has considered the issue in the case of Manubhai M. Patel (supra) as under : "5. Section 143(1)(a ) of the Act says that where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, then, particular powers can be exercised by the Assessing Officer. Section 154 of the Act relates to rectification of mistakes. With a view to rectify any mistake apparent from the records, the income-tax authorities referred to in section 116 may amend any order passed by it under the provisions of the Act. In the present matter, proceedings were drawn under section 143(1)(a) on the premises that such deductions were not permissible. It is not in dispute before us that on the date when the assessee was claiming the deductions, the s of the Tribunal and of the different High Courts were in favour of the assessee wherein the Tribunals or the High Courts had observed that to the extent of 40 per…

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