VINAYAK EDUCATION TRUST,AARADI CHHAK, BHADRAK vs. ITO EXEMPTION, CUTTACK

It was submitted by ld AR that this is an appeal against the order u/s.143(1) of the Act issued by the CPC. It was the submission that as per the provisions of section 143(1) of the Act, before making any adjustment, a show cause notice has to be issued to the assessee. It was the submission that no show cause notice has been issued to the assessee, therefore, the intimation issued u/s.143(1) is liable to be quashed.

At the time of hearing, Ld.Sr. DR was asked to show the show cause notice issued as per the proviso to Section 143(1) of the Act before issuance of the intimation u/s.143(1) of the Act. The Sr. DR was unable to 2 show the copy of the show cause notice as required under the first proviso to Section 143(1) of the Act before making any adjustments in the intimation u/s.143(1) of the Act. The intimation u/s.143(1) of the Act also does not show of any show cause notice being issued to the assessee. The very same issue has already been decided by the coordinate bench of the Tribunal in the case of Sikshya Bharat Trust, passed in dated 21.09.2023, wherein it has been held as under :- 6. I have considered the rival submissions. A perusal of provisions of section 143(1) of the Act shows that it is compulsory for the revenue to issue show cause notice before making any adjustment in the intimation u/s.143(1) of the Act. The letter received from CPC, Bengaluru also clearly admits that no show cause notice has been issued to the assessee. This being so, as no show cause notice under the provisions of section 143(1) has been issued before making adjustment, the intimation issued u/s.143(1) stands quashed.

Respectfully following the above observations of the coordinate bench of the Tribunal, as there is no show cause notice has been issued to the assessee before making adjustment in the intimation u/s.143(1) of the Act for both the assessment years, the intimation issued u/s.143(1) of the Act in both the appeals under consideration stand quashed.

In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 25/10/2023. (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 25/10/2023 Prakash Kumar Mishra, Sr.P.S.