A.O. can rectify the intimation u/s 143(1) only to determine tax payable by assessee or any refund due to the assessee

RELEVANT PARAGRAPH

10. The present appeal has arisen from the order of Id. CIT(A) dated 19.07.2007 confirming the A.O.’s order passed u/s 154 of the Act on an application filed by the assessee u/s 154 of the Act to rectify the intimation issued u/s 143(1) of the Act with a view to exclude the arrears of rent from returned total income shown by the assessee in the return of income. In this case, the assessee filed his return of income on 29.06.1999 declaring total income at Rs. 15,77,534/-, wherein the arrears of rent was included while computing the income under the head “income from house property”. The A.O. processed the return of income u/s 143(1) at a returned total income of Rs. 15,77,534/-. No adjustment to the returned total income was made by the A.O. while making intimation u/s 143(1) of the Act. Thereafter, the assessee filed an application u/s 154 of the Act with a request to rectify the intimation issued u/s 143(1) by excluding the arrears of rent from the total income chargeable to tax under the Act. The intimation u/s 143(1) is dated 15.12.2000. The assessee filed an application u/s 154 on 08.06.2001. Since return of income was filed on 29.06.1999, the intimation was made on 15.12.2000 u/s 143(1), we have to refer the relevant provisions of section 143(1) with a view to see the scope and effect of section 143(1) of the Act, which has been inserted in the statute with effect from 01.06.1999. Section 143(1) as substituted from 01.06.1999, reads as under:-

(1) “Where a return has been made u/s 139, or in response to a notice under sub-section (1) of section 142,-

(i) if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued u/s 156 and all the provisions of this Act shall apply accordingly; and (ii) if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee: Provided that except as otherwise provided in this sub-section, the acknowledgement of the return shall be deemed to be intimation under this sub-section where either no sum is payable by the assessee or no refund is due to him: Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made].

Provided also that where the return made is in respect of the income first assessable in the assessment year commencing on the 1st day of April, 1999, such intimation may be sent at any time up to the 31st day of March, 2002.”

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