JRW TRANSFREIGHT PRIVATE LTD. ,J J ROAD, UPPER BAZAR, RANCHI vs. ASSISTANT DIRECTOR OF INCOME TAX, CPC, BENGALURU

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ITA 211/RAN/2023Status: DisposedITAT Ranchi13 June 2025AY 2020-21Bench: S/SHRI GEORGE MATHAN, JUDICIAL MEMBER AND RATNESH NANDAN SAHAY (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that according to Section 143(1) of the Act, a show cause notice is mandatory before making any adjustment in the intimation. A perusal of the records indicated that no such notice was issued to the assessee.

What were the facts?

The assessee filed an appeal against an order of the CIT(A)-NFAC relating to assessment year 2020-2021. The appeal was against an intimation issued by the CPC under section 143(1) of the Act.

What were the issues?

Whether the intimation issued under section 143(1) is liable to be quashed for want of a show cause notice before making adjustments.

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: BEFORE S/SHRI GEORGE MATHANSHRI GEORGE MATHAN & RATNESH NANDAN SAHAY & RATNESH NANDAN SAHAY & RATNESH NANDAN SAHAY

For Appellant: Shri Ajaya Poddar, AR ri Ajaya Poddar, AR
For Respondent: Shri Khubchand T Pandya, Sr DR hri Khubchand T Pandya, Sr DR
Hearing: 13/06/202Pronounced: 13/06/202

O R D E R Per Bench

This is an appeal filed by the assessee against the order of the ld CIT(A) This is an appeal filed by the assessee against the order of the ld CIT(A) This is an appeal filed by the assessee against the order of the ld CIT(A)- NFAC Delhi dated dated2.8.2023 in Appeal No.NFAC/2019-20/10178037 20/10178037 for the assessment year 2020 2020-2021.

2.

Shri Khubchand T Pandya, ld Sr Shri Khubchand T Pandya, ld Sr DR appeared for the revenue and Shri DR appeared for the revenue and Shri Ajaya Poddar, ld AR appeared for the assessee. ld AR appeared for the assessee.

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3.

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 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.

4.

In reply, ld Sr DR conceded that no show cause notice u/s.143(1) to the assessee.

5.

We have considered the rival submission. 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. 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 of the assessee stands allowed.

Order dictated and pronounced in the open court on 13/06/2025.

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