What did the Tribunal hold?

The Tribunal held that the revenue failed to issue a mandatory show cause notice before making adjustments in the intimation under Section 143(1) of the Income Tax Act. Therefore, the intimation stands quashed.

The assessee trust's claim for exempt income was denied by the CIT(A) for AY 2013-14 and 2014-15. The assessee did not appear for the hearing.

What were the issues?

Whether the intimation under Section 143(1) is valid without issuing a show cause notice before making adjustments.

Mahalaxmi Binodini Memorial… vs ITO | ITAT Cuttack 2023

Income Tax Appellate Tribunal, “SMC” BENCH CUTTACK

Before: SHRI GEORGE MATHAN

Hearing: 20/10/2023Pronounced: 20/10/2023

O R D E R These are the appeals filed by the assessee against the order of the ld CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 28.04.2023 passed in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1052439583(1) & ITBA/NFAC/S/250/2023-24/1052433882(1) for the assessment year 2013-2014 & 2014-2015, wherein the assessee’s claim of exempt income has been denied.

None represented on behalf of the assessee. Shri Charan Dass, Sr. DR appeared on behalf of the revenue 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 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 shows cause 2 notice being issued to the assessee. This being so, respectfully following the decision of the coordinate bench of this Tribunal in the case of Sikshya Bharat Trust, passed in ITA No.240/CTK/2023, 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.

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, therefore, the intimation issued u/s.143(1) of the Act in both the appeals under consideration stand quashed.

In the result, both appeals of the assessee are allowed. Order dictated and pronounced in the open court on 20/10/2023.

(जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 20/10/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : अऩीऱाथी / The Appellant- 1. Mahalaxmi Binodini Memorial Charitable Trust, 77, Satya Nagar, Bhubaneswar-751007 प्रत्यथी / The Respondent- 2. ITO, Exemption, Bhubaneswar आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, 5. ITAT, Cuttack

MAHALAXMI BINODINI MEMORIAL CHARITABLE TRUST,BHUBANESWAR vs. ITO (EXEMPTION WARD), BHUBANESWAR

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