Loading judgment…
Facts
The assessee filed her return of income on 31.07.2024. The OTP verification was done on 31.08.2024, and consequently, the CPC treated her return as 'non est' and issued an intimation under section 143(1) of the Act, denying the claim for house rent allowance. This intimation was issued without a show cause notice.
Held
The Tribunal held that the intimation issued under section 143(1) of the Act was bad in law as it was issued without complying with the provisions of the first proviso to Section 143(1), which mandates that an intimation should be issued to the assessee before the final intimation. Therefore, the assessment was quashed.
Key Issues
Whether the intimation issued under section 143(1) of the Act is valid when it is issued without complying with the statutory requirements, specifically the requirement of issuing a show cause notice before treating the return as non est and denying claims.
Sections Cited
143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
Per Bench : This is an appeal filed by the assessee against the order passed by the ld. Addl/JCIT(A)-10, Mumbai, dated 17.04.2025 for the assessment year 2024-2025. 2. The appeal of the assessee is barred by 24 days. In this regard, the assessee has filed condonation application supported with an affidavit stating therein sufficient reasons for condonation of delay. Ld.Sr. DR also did not object to the same. Accordingly, we condone the delay of 24 days and proceed to dispose off the appeal.
It was submitted by the Ld. AR that the assessee had filed her return of income on 31.07.2024 and the OTP verification which was supposed to have been done on 30.08.2024 was done on 31.08.2024. Consequently,
2 the CPC treated her return as non est and issued intimation u/s.143(1) of the Act denying assessee’s claim of house rent allowance of Rs.6,18,569/- It was submission that the intimation has been issued on 13.02.2025 without issuing a show cause notice to the assessee. It was the submission that the intimation is liable to be quashed.
In reply, the ld. Sr. DR vehemently supported the orders of the CPC and ld. CIT(A).
We have considered the rival submissions. As it is noticed that the intimation has been issued without complying with the provisions of 1st proviso to Section 143(1) of the Act, which requires that an intimation is to be issued to the assessee before the intimation u/s.143(1) of the Act issued, the issues intimation u/s.143(1) of the Act is bad in law and consequently, the assessment is hereby quashed.
In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 01/12/2025. (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 01/12/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant - प्रत्यर्थी / The Respondent- 2. 3. आयकर आयुक्त(अपील) / The CIT(A), आयकर आयुक्त / CIT 4. आदेशािुसार/ BY ORDER, 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack गार्ज फाईल / Guard file.
(