Sikshya Bharati Trust, Banki V. ITO (Exemption), Cuttack

ITA 240/CTK/2023

AI Insights

The case involves Sikshya Bharati Trust appealing against an order from the CIT(A), NFAC, Delhi, which pertained to the assessment year 2017-18. The core issue was the intimation under section 143(1) of the Income Tax Act issued by the CPC, which made adjustments to the Trust's return without issuing a show cause notice. The Trust argued that the adjustments were invalid as the mandatory show cause notice was not issued prior to the adjustments. The CPC acknowledged the omission but argued that the adjustments were still valid. The tribunal, however, upheld the Trust's appeal, emphasizing the necessity of the show cause notice as a prerequisite for any adjustments under section 143(1).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300458 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 06-07-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE Sikshya Bharat At:College Road, Banki 75408 Dist: PAN/GIR No. (Appellant This is an appeal filed by the assessee against the order of the ld CIT(A) ,NFAC, Delhi 24/1052730744 2. Shri K.K.Bal, ld AR appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the 3. It was submitted by ld AR that thi u/s.143(1) of the Act issued by the CPC. the provisions of section 143(1), before making any adjustment, a show cause notice has to be iss IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL ITA No.240/CTK/2023 Assessment Year : 2017-18 Sikshya Bharati Trust, At:College Road, Banki- Dist: Cuttack Vs. DCIT, CPC, Bangalore PAN/GIR No.AAKTS 6470 L (Appellant) .. ( Respondent Assessee by : Shri K.K.Bal, Adv Revenue by : Shri S.C.Mohanty Date of Hearing : 21/09 Date of Pronouncement : 21/0 O R D E R This is an appeal filed by the assessee against the order of the ld ,NFAC, Delhi dated 10.5.2023 in Appeal No.ITB 24/1052730744(1) for the assessment year 2017-18. Shri K.K.Bal, ld AR appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the revenue. It was submitted by ld AR that this is an appeal against the u/s.143(1) of the Act issued by the CPC. It was the submission that as per the provisions of section 143(1), before making any adjustment, a show cause notice has to be issued to the assessee. It was the submission that Page1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, , CUTTACK JUDICIAL MEMBER DCIT, CPC, Bangalore Respondent) K.K.Bal, Adv : Shri S.C.Mohanty, Sr DR 9/2023 /09/2023 This is an appeal filed by the assessee against the order of the ld ITBA/NFAC/S/250/2023- Shri K.K.Bal, ld AR appeared for the assessee and Shri S.C.Mohanty, s is an appeal against the order was the submission that as per the provisions of section 143(1), before making any adjustment, a show ued to the assessee. It was the submission that ITA No.240/CTK/2023 Assessment Year : 2017-18 Page2 | 3 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 placed before me a letter from the Centralised Processing Centre, Bengaluru dated 21.9.2023 mentioning as follows: “Please refer to the trailing mail. I am directed by Director of Income tax, CPC, Bengaluru to communicate as under:- “Since all legal matters ae handled by Unit-4 at CPC, mails are being sent from this unit and not from cit.cpc.bangalore mail. In all the mails sent earlier, pdf of entire intimation u/s.143(1) as downloaded from the portal have been duly sent. Even in the present case i.e. Sikhya Bharati Trust, the pdf of intimation u/s.143(1) issued to the assessee from CPC for A.Y. 2017-18 is forwarded as annexure alongwith screen shot of mail id to which intimation u/s.143(1) is issued. If the complete page nos. are not appearing in intimation u/s.143(1), same cannot be inserted by CPC now. 2. In this case, deprecation of Rs.127,831/- was disallowed while processing the return u/s.143(1) but due to technical issue notice under proviso to section 143(1) i.e. prima facie adjustment notice was not triggered to the assessee. Thus, all other details called for vide trailing mail does not arise in this case.” 5. It was the submission that not in all cases, show cause notice in respect of intimation u/s.143(1) is required to be issued. 6. I have considered the rival submissions. 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. The letter received from CPC, Bengaluru also clearly admits that no show cause notice has been issued to the assessee. This being so, as no show cause notice under the provisions of section 143(1) ITA No.240/CTK/2023 Assessment Year : 2017-18 Page3 | 3 has been issued before making adjustment, the intimation issued u/s.143(1) stands quashed. 7. In the result, appeal filed by the assessee stand allowed. Order dictated and pronounced in the open court on 21/09/2023. Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 21/09/2023 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The appellant : Sikshya Bharati Trust, At:College Road, Banki-75408 Dist: Cuttack 2. The Respondent: DCIT, CPC, Bangalore 3. The CIT(A)-NFAC, Delhi 4. Pr.CIT, Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//