TELUGU UNION BAPTIST CHURCH,GAJAPATI SQUARE vs. ASST DIRECTOR OF INCOME TAX, CPC

Shri Radha Krishna Sahoo, Advocate appeared on behalf of the Shri Radha Krishna Sahoo, Advocate appeared on behalf of the Shri Radha Krishna Sahoo, Advocate appeared on behalf of the assessee and filed assessee and filed an adjournment petition dated 15.4.2024 an adjournment petition dated 15.4.2024, inter alia, stating that as the trustee Sri Venugopal stating that as the trustee Sri Venugopal, who is looking after the income , who is looking after the income tax matters has been suffering from fever since four days, necessary tax matters has been suffering from fever since four days, necessary tax matters has been suffering from fever since four days, necessary information could not be gathered for enabling the petitioner advocate to information could not be gathered for enabling the petitioner advocate to information could not be gathered for enabling the petitioner advocate to P a g e 1 | 3 appear before the Tribunal, therefore, prayed for adjournment towards last week of next month. We reject the adjournment petition and proceed to decide the appeal after hearing ld Sr DR appeared on behalf of the revenue.

We have considered the submission ld Sr.DR. We observe that the present appeal is filed against the order u/s.143(1) of the Act issued by the CPC. As per the provisions of section 143(1) of the Act, before making any adjustment, it is compulsory for the revenue to issue a show cause notice to the assessee. In this case, no show cause notice has been issued to the assessee before making any adjustment. The very same issue has been dealt and decided by the SMC Bench of this Tribunal, wherein, in the case of Vinayak Education Trust in for A.Y. 2016-17 dated 25.10.2023, wherein, it has been held as under:

“3. 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 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.

In the result, appeal of the assessee stands allowed.