“section 143(1) intimation”
The decision most relied on for section 143(1) intimation is Kalpesh Synthetics (P.) Ltd. v. DCIT (137 Taxmann.com 475), cited in 198 judgments on BharatTax.
Leading authorities on section 143(1) intimation
A deduction claimed under Section 36(1)(va) for employee contributions remitted after the statutory due date but before the return filing due date cannot be disallowed during intimation processing under Section 143(1) if the issue is debatable. Such a disallowance cannot be made automatically based solely on auditor's mention of actual vs. due dates in the tax audit report.
Reassessment proceedings under Section 147 can be initiated even if only an intimation under Section 143(1) was issued, as such an intimation does not constitute a full assessment. In such cases, the Assessing Officer merely needs to have reason to believe that income has escaped assessment, based on tangible material.
A 'business connection' for non-residents requires a real and intimate relation between their trading activities outside India and activities within India, contributing directly or indirectly to their earnings. The Supreme Court assigned a wide meaning to this term.
There can be no estoppel against the statute, meaning tax cannot be levied or collected without express authority of law. An appellate authority may adjudicate additional claims or legal contentions to ensure the correct tax liability is determined.
An assessment framed by the Assessing Officer in the name of a defunct transferor company is valid if the assessee failed to intimate the AO about the merger or amalgamation.
Reasons constitute the soul of any judicial or quasi-judicial decision. Assessing Officers, including the CPC, must pass reasoned orders and not act arbitrarily or summarily when issuing intimations under Section 143(1) of the Income-tax Act.
A reassessment notice issued under Section 148 is invalid if the Assessing Officer acts merely on intimation or 'borrowed satisfaction' from another authority without independently forming their own 'reason to believe' that income has escaped assessment.
Reassessment proceedings under Section 147 cannot be initiated for mere verification of claims or a fishing and roving inquiry, even after a Section 143(1) intimation. The Assessing Officer must possess tangible material and form an independent, genuine reason to believe that income has escaped assessment, rather than relying on borrowed satisfaction.
