GE India Industrial Private Limted, New Delhi V. ACIT, (OSD), New Delhi

ITA 3020/DEL/2022

AI Insights

The case involves GE India Industrial Private Limited appealing against two separate orders by the NFAC, Delhi, pertaining to the Assessment Years 2017-18 and 2018-19. The primary issue was the adjustments made to the returned income for both years without prior intimation to the assessee, which is a requirement under section 143(1) of the Income Tax Act. The tribunal found that there was no evidence of such intimation being issued before the adjustments were made, leading to the decision to allow the appeals and direct a re-examination of the intimation process.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300863 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 25-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘B’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA No. 3019/DEL/2022 [A.Y 2017-18] ITA No. 3020/DEL/2022 [A.Y 2018-19] GE India Industrial Private Limited Vs. The A.C.I.T. A-18, First Floor Okhla Industrial Area OSD Phase –II, Okhla Industrial Estate New Delhi S.O. Techchand, South East Delhi New Delhi PAN: AAACG 4901 D (Applicant) (Respondent) Assessee By : Shri Sachit Jolly, Adv Ms. Soumya Singh, Adv Department By : Shri T. James Singson, CIT-DR Shri Vivek Kumar Upadhyay, Sr. DR Date of Hearing : 16.10.2023 Date of Pronouncement : 18.10.2023 2 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- The above captioned two separate appeals by the assessee are preferred against 2 separate orders dated 04.11.2022 and 28.10.2022 by the NFAC, Delhi pertaining to Assessment Years 2017-18 and 2018-19. 2. Since common grievance is involved in the captioned appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. Briefly stated, the facts of the case are that for A.Y 2017-18, return was filed on 31.03.2018 and for A.Y 2018-19, return was filed on 30.11.2018. Return for A.Y 2017-18 was processed and intimation u/s 143(1) of the Act is dated 29.03.2019 and for A.Y 2018-19, intimation is dated 02.03.2020. In both the years, certain adjustments were made to the returned income. 3 4. Challenge before us is, no adjustment can be made unless an intimation is given to the assessee, i.e. no adjustment can be made without notice. 5. It would be pertinent to refer to the provisions of section 143(1) of the Act as they stood at the relevant point of time, which read as under: “1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making the following adjustments, namely:— xxxxxxx xxxxxxx Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case 4 where no response is received within thirty days of the issue of such intimation, such adjustments shall be made:] 6. There is no ambiguity in the 1 st Proviso mentioned hereinabove. The mandate is very specific that no such adjustment shall be made unless an intimation is given to the assessee of such adjustments and the officer has to wait for 30 days before proceeding further, as mentioned in the proviso hereinabove. 7. Facts on record show that there is no evidence of such intimation issued before framing the order u/s 143(1) of the Act though the NFAC/CIT(A) has confirmed the two adjustments and have directed the Assessing Officer to reverify in respect of other adjustments but there is no mention of intimation prior to making the adjustments. Since this part goes to the root of the matter, we deem it fit to restore the issue to the file of the Assessing Officer/CPC. 8. The Assessing Officer/CPC is directed to verify whether any intimation was issued either in writing or in electronic mode prior to making the impugned adjustments. If yes, then furnish the details and if 5 no such intimation was issued, then the impugned intimation u/s 143(1) of the Act is treated as bad in law and deserves to be quashed. With these directions, the impugned appeals are allowed for statistical purposes. 9. In the result, the appeals of the assessee in ITA Nos. 3019/DEL/2022 and 3020/DEL/2022 are allowed for statistical purposes. The order is pronounced in the open court on 18.10.2023. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18 th OCTOBER, 2023. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi 6 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order