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Facts
The assessee filed an appeal against an order passed by the CIT(A) for AY 2020-2021, which stemmed from an intimation issued u/s 143(1) of the Income Tax Act by the CPC. The core grievance was the issuance of this intimation without a prior show cause notice.
Held
The Tribunal found that the revenue failed to produce any evidence of a show cause notice being issued to the assessee before making adjustments in the intimation u/s 143(1). Emphasizing the mandatory nature of a show cause notice under the first proviso to Section 143(1) for any adjustments, the Tribunal quashed the intimation issued u/s 143(1).
Key Issues
The validity of an intimation issued under Section 143(1) of the Income Tax Act where no show cause notice was issued to the assessee prior to making adjustments, as required by its first proviso.
Sections Cited
143(1)
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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
(निर्धारण वर्ा / Assessment Year : 2020-2021) Singatala Society For Education Vs ADIT, CPC, Bengaluru Relief and Vocational Excellence K.J.Sanyal Road, Malda-732101 PAN No. :AAABS 1601 H (अपीलधर्थी /Appellant) (प्रत्यर्थी / Respondent) .. निर्धाररती की ओर से /Assessee by : None रधजस्व की ओर से /Revenue by : Shri Raja Sengupta, CIT-DR सुनवाई की तारीख / Date of Hearing : 30/04/2025 घोषणा की तारीख/Date of Pronouncement : 30/04/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 22.11.2024, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, passed in DIN & Order No.ITBA/NFAC/S/250/2024- 25/1070548583(1), for the assessment year 2020-2021.
None appeared on behalf of the assessee. Shri Raja Sengupta, CIT- DR appeared on behalf of the revenue.
On perusal of the assessment order as well as the appellate order, we found that the present appeal is filed by the assessee against the order u/s.143(1) of the Act issued by the CPC without issuing a show cause notice.
At the time of hearing, Ld.CIT-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 CIT-DR was unable to show the copy of the show cause notice as required under the first 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. 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 there is no show cause notice has been issued to the assessee, the intimation issued u/s.143(1) of the Act stand quashed.
In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 30/04/2025.