What did the Tribunal hold?

The Tribunal held that issuing a show cause notice before making any adjustment under Section 143(1) is mandatory. As no such notice was issued to the assessee for AY 2020-2021, the intimation is liable to be quashed.

The assessee filed an appeal against an intimation issued under Section 143(1) of the Income Tax Act for AY 2020-2021. The assessee contended that no show cause notice was issued before making adjustments.

What were the issues?

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

Geetiranjan Mohanty, at-Kalyani… vs ITO | ITAT Cuttack 2024

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: MANISH AGARWAL

For Appellant: Shri K.K.Bal, Adv

For Respondent: Shri S.C.Mohanty

Hearing: 5/9Pronounced: 5/9

Assessment Year : 2020-2021 2021 Geeti Ranjan Mohanty, At Geeti Ranjan Mohanty, At- Vs. Income Tax Officer, Ward Income Tax Officer, Ward- Kalyani Kalyani Nagar, Nagar, 1(1), Cuttack 1(1), Cuttack Madhupatana, Cuttack Madhupatana, Cuttack PAN/GIR No. No.ABCPM 1532 G (Appellant (Appellant) .. ( Respondent Respondent) Assessee by : Shri K.K.Bal, Adv K.K.Bal, Adv Revenue by : Shri S.C.Mohanty, S.C.Mohanty, Sr DR Date of Hearing : 5/9/ /2024 Date of Pronouncement : 5/9 /9/2024 O R D E R Per Bench This is an appeal filed by the assessee against the ord This is an appeal filed by the assessee against the ord This is an appeal filed by the assessee against the order of the ld Addl/JCIT(A)-2, Bengaluru 2, Bengaluru dated 4.3.2024 in Appeal No. in Appeal No.NFAC/2019- 20/10140320 for the assessment year 2020-2021.

Shri K.K.Bal, K.K.Bal, ld AR appeared for the assessee and Shri the assessee and Shri S.C.Mohanty, Sr. DR appeared for the revenue. DR appeared for the revenue.

It was submitted by ld AR that this is an appeal against the order It was submitted by ld AR that this is an appeal against the order 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 1) of the Act issued by the CPC. It was the submission that as per 1) of the Act issued by the CPC. It was the submission that as per the provisions of section 143(1), before making any adjustment, a show the provisions of section 143(1), before making any adjustment, a show the provisions of section 143(1), before making any adjustment, a show

P a g e 1 | 3 cause notice has to be issued to the assessee. It was the submission that as no show cause notice has been issued to the assessee, therefore, the intimation issued u/s.143(1) is liable to be quashed. Ld AR further produced a screenshot of email to the assessee by the revenue regarding the intimation u/s.143(1)(a) of the Act proposing adjustments to the total income for the A.Y. 2020-2021 without attachment for PAN ABCMP1532G as follows:

“

P a g e 2 | 3

In reply, ld Sr DR supported the order of the AO and ld CIT(A) 5. We 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 show cause notice issued by the CPC has categorically mentioned the assessment year 2020-21, which is also evident that the email is conspicuous. This being so, as no show cause notice under the provisions of section 143(1) has been issued for the assessment year 2020-21 before making adjustment, the intimation issued u/s.143(1) stands quashed. 6. In the result, appeal filed by the assessee stand allowed. Order dictated and pronounced in the open court on 5/9/2024. SD/- SD/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 5/9/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : 1. The Appellant : Geeti Ranjan Mohanty, At- Kalyani Nagar, Madhupatana, Cuttack 2. The Respondent: Income Tax Officer, Ward- 1(1), Cuttack 3. The Addl/JCIT(A)-2, Bengaluru 4. Pr.CIT, Cuttack 5. DR, ITAT, 6. Guard file. //True Copy//

GEETIRANJAN MOHANTY,AT-KALYANI NAGAR, CUTTACK vs. INCOME TAX OFFICER WARD-1(1) CUTTACK, CUTTACK

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