Failure to issue Intimation before Adjustment u/s 143(1)(a): ITAT allows Appeal
The ITAT allowed the appeal as the revenue authorities failed to provide proof of issuing the required notice, granting them the opportunity to approach the tribunal if the proof is found
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) allowed the appeal due to the failure to issue intimation before making the adjustment of Rs. 6,50,830 under Section 143(1)(a) of Income Tax Act,1961. Satishchandra Hiralal Berawala,appellant-assessee,challenged the appeal dated 29.03.2024 for the Assessment Year 2020-21 passed by Commissioner of Income...
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) allowed the appeal due to the failure to issue intimation before making the adjustment of Rs. 6,50,830 under Section 143(1)(a) of Income Tax Act,1961.
Satishchandra Hiralal Berawala,appellant-assessee,challenged the appeal dated 29.03.2024 for the Assessment Year 2020-21 passed by Commissioner of Income Tax(Appeals)[CIT(A)]. The assessee raised several grounds including that the Additional Joint Commissioner of Income Tax(Addl. JCITA) dismissed the appeal without addressing the failure to issue the required notice under Section 143(1)(a) before the Rs. 6,50,830 adjustment.
The assessee also claimed the Addl. JCIT A ignored the non-speaking order under Section 143(1) and wrongly confirmed the addition without considering the Rs. 3 lakh exemption under Section 10(10AA)(ii) due to an invalid Gazette Notification. Lastly, the assessee argued that Leave Encashment over Rs. 3 lakhs should qualify for relief under Section 891.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
An adjustment of Rs. 6,50,830/- was made by the Centralized Processing Centre(CPC), Bangalore under Section 143(1) of the Act. The counsel for the assessee stated that the required notice was not issued before making the adjustment under Section 143(1)(a).
The two member bench comprising Siddhartha Nautiyal(Judicial Member) and Dr.BRR Kumar(Vice President) reviewed the provisions of Section 143(1) of the Act, which require an intimation to be given to the assessee, either in writing or electronically, before making any adjustments.
The revenue authorities were asked to provide proof of the notice issued to the assessee but failed to do so. As a result, the appeal was allowed, with the Revenue given the opportunity to approach the tribunal if they can provide the correct proof of notice.
In short,the appeal filed by the assessee was allowed.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
