K1 SECURITY SERVICES PVT LTD,BHUBANESWAR vs. DCIT CIRCLE-1(1), BHUBANESWAR

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ITA 377/CTK/2023Status: HeardITAT Cuttack11 June 2024AY 2019-203 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that issuing a show cause notice is compulsory before making any adjustment in an intimation under Section 143(1). Since no such notice was issued, the intimation is quashed.

What were the facts?

The assessee filed an appeal against an intimation issued under Section 143(1) by the CPC. The assessee contended that no show cause notice was issued before the adjustment, making the intimation liable to be quashed.

What were the issues?

Whether a show cause notice is mandatory before making adjustments in an intimation under Section 143(1) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 143(1)

AI-generated summary — verify with the full judgment below

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

Before: MANISH AGARWAL

For Appellant: Shri A.K.Padhy, hy, CA
For Respondent: Shri Charan Dass, Sr, Shri Charan Dass, Sr DR
Hearing: 11/0Pronounced: 11/0

O R D E R Per Bench This is an appeal filed by the assessee against the order of the ld This is an appeal filed by the assessee against the order of the ld This is an appeal filed by the assessee against the order of the ld Addl.JCIT(A), Addl.JCIT(A), Varanasi Varanasi dated 31.10.2023 in in Appeal Appeal No. No. CIT(A), Bhuabenswar- -1/10049/2020-21 for the assessment year for the assessment year 2019-20.

2.

Shri A.K.Padhy, A.K.Padhy, ld AR appeared for the assessee and Shri the assessee and Shri Charan Dass, Ld Sr. DR appeared for the revenue. DR appeared for the revenue.

3.

It was submitted by ld AR that this is an appeal against It was submitted by ld AR that this is an appeal against 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 u/s.143(1) of the Act issued by the CPC. It was the submission that as per u/s.143(1) of the Act issued by the CPC. It was the submission that as per

1.

P a g e 1 | 3 the provisions of section 143(1), 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. In support of this, an affidavit is filed by the ld AR of the assessee stating that no e-mail in the form of annexure and office communication dt. 6.12.2019 was received by the assessee from CPC.

4.

In reply, ld Sr DR submitted that not in all cases, show cause notice in respect of intimation u/s.143(1) is required to be issued.

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. 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.

6.

In the result, appeal filed by the assessee stand allowed.

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