PALGANJ PRIYAMARY AGRICULTURE CREDIT CO OPERATIVE SOCIETY LTD,GIRIDIH vs. ITO, GIRIDIH

PDF

ITA 43/RAN/2025Status: DisposedITAT Ranchi25 November 2025AY 2021-22Bench: 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 and in consequence thereof the order passed by the Id. CIT(A) deserves to be dismissed.3 pages

AI SummaryAllowed

Facts

The assessee filed appeals against orders passed under Section 143(1) of the Income Tax Act by the CPC, which were subsequently confirmed by the CIT(A). The assessee contended that these orders were invalid because no show cause notice was issued before making adjustments in the intimation, a mandatory requirement under the proviso to Section 143(1).

Held

The Tribunal found that the Senior DR was unable to produce any show cause notice issued to the assessee before making adjustments in the intimation under Section 143(1). Since the issuance of a show cause notice is a compulsory prerequisite for any adjustments under Section 143(1), the Tribunal quashed the intimation and held the confirming order of the CIT(A) to be unsustainable.

Key Issues

Whether an intimation issued under Section 143(1) of the Income Tax Act is valid if no show cause notice was issued to the assessee before making adjustments.

Sections Cited

143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC BENCH”, RANCHI

Before: SHRI GEORGE MATHAN

Hearing: 25/11/2025Pronounced: 25/11/2025

These two appeals filed by the assessee against the order of the ld. Addl/JCIT(A)-2, Jaipur, both dated 23.01.2025 for the assessment year 2021-2022 & 2022-2023. 2. Shri Devesh Poddar, ld.AR represented on behalf of the assessee. Shri Khubchand T Pandya, Sr. DR appeared on behalf of the revenue.

It was submitted by the ld. AR that these two appeals are against the order u/s.143(1) of the Act issued by the CPC, which has been confirmed by the ld. CIT(A). It was the submission that as per the provisions of section 143(1) of the Act, 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 and in consequence thereof the order passed by the ld. CIT(A) deserves to be dismissed.

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.

I have considered the rival submissions. A perusal of intimation u/s.143(1) of the Act also does not show of any show cause notice being issued to the assessee. Even the ld. CIT(A) has not taken into consideration that no show cause notice has been issued to the assessee before making adjustment in the order passed u/s.143(1) of the Act by the CPC. 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) of the Act has been issued before making adjustment, the intimation issued u/s.143(1) of the Act in both the appeals of the assessee stands quashed and in consequence thereof the order passed by the ld. CIT(A) in both the appeals also stands unsustainable.