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Facts
The assessee filed an appeal against the order of the CIT(A) which confirmed an intimation under section 143(1) of the Income Tax Act. The assessee contended that no show cause notice was issued before making the adjustment. The revenue was unable to produce a copy of the show cause notice.
Held
The Tribunal held that issuing a show cause notice before making any adjustment under section 143(1) is compulsory. As no show cause notice was issued to the assessee, the intimation under section 143(1) is liable to be quashed.
Key Issues
Whether the intimation under section 143(1) of the Act is valid without issuing a show cause notice to the assessee before making any adjustment.
Sections Cited
143(1)
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Income Tax Appellate Tribunal, RANCHIBENCH,RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
ĮċĊĭŊįēćıकीओरसे/Assessee by : Shri Balaji Venkat, AR ēĭÿ ˢ कीओरसे/Revenue by : Shri Khubchand T. Pandya Sr.DR Ǖ��ȡ_�ȧ�ȡ�ȣ�/ Date of Hearing : 21/05/2025 �Ȫ��ȡ�ȧ�ȡ�ȣ�/Date of Pronouncement : 21/05/2025 आदेश/ O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 17.05.2023, passed in ITBA/NFAC/S/250/2023-24/1052924406(1) for the assessment year 2018-2019.
It was submitted by the ld. AR that this is an appeal 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.
We 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 assesse 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 stands quashed and consequently the order passed by the ld. CIT(A) also stands dismissed.