Adjustment on debatable issue not permitted in section 143(1)(a) intimation

Advertisement City Manager Association Ahmedabad Municipal Corporation Vs DCIT (ITAT Ahmedabad) Let us consider the scope of section 154 for making prima facie adjustment while processing return under section 143(1)(a) of the Act i.e. process of dealing with the return is an ex parte process. It is pertinent to observe that whenever any debatable issue is involved an explanation of the assessee is required, then on such issue, no prima facie adjustment in an ex parte proceedings can be made. If facts are looked into, then it would reveal that both the issues were debatable one, where more t...