KHUSHBOO SHAH,KOLKATA V. I.T.O., WARD - 33(2), KOLKATA

ITA 2643/KOL/2025

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The case involves Khushboo Shah, an individual and a partner in a partnership firm, who appealed against the order of the Addl/JCIT(A)-4, Mumbai for the assessment year 2020-2021. The primary issue was the disallowance of loss related to the partnership firm by the CPC during the processing of the intimation under Section 143(1) of the Income Tax Act. The assessee argued that the CPC did not issue the required intimation as per the first proviso to Section 143(1) before making the adjustment. The Tribunal found that the intimation was not only procedurally incorrect but also that the assessee had not claimed any exempt income or loss from the partnership in his return, leading to the quashing of the intimation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829077 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 14-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: S.S. GUPTA
• Keywords: Earning of tax free income

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.2643/KOL/2025 (नििाारण वर्ा / Assessment Year :2020-2021) Khushboo Shah, Ground Floor, Chandrasekhar-II L.R.Sarani.SO. 27A, Rowland Road, Kolkata, PIN-700020 Vs ADIT/CPC, Bengaluru PAN No. :ARDPB 8525 D TAN No. :CALK10563A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri S.S.Gupta, AR राजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 13/01/2026 घोषणा की तारीख/Date of Pronouncement : 13/01/2026 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 19.09.2025, passed by the ld.Addl/JCIT(A)-4, Mumbai for the assessment year 2020-2021. 2. It was submitted by the ld.AR that the assessee is an individual, who is a partner in a partnership firm. The assessee when filing his return has not offered his shares of profits or loss from the partnership firm in his return of income. It was the submission that the CPC while processing the intimation u/s.143(1) of the Act has disallowed the loss in relation to the partnership firm. It was the submission that the CPC has also not issued the intimation as required in the first proviso to Section 143(1) of the Act before making the adjustment. Ld.AR drew my attention to page 34 to 36 of the paper book which are the screenshot of the portal to substantiate its Printed from counselvise.com ITA No.2643/KOL/2025 2 claim that the intimation as required under first proviso to Section 143(1) of the Act has not been issued, which reads as under:- Printed from counselvise.com ITA No.2643/KOL/2025 3 Printed from counselvise.com ITA No.2643/KOL/2025 4 3. It was the submission that the intimation issued u/s.143(1) of the Act liable to be quashed. Printed from counselvise.com ITA No.2643/KOL/2025 5 4. In reply, ld.Sr. DR vehemently supported the orders of the ld. CPC and ld. JCIT(A). 5. I have considered the rival submissions. A perusal of the copy of the return filed by the assessee clearly shows that the assessee has not claimed the exempt income in respect of the partnership firm nor has the assessee claimed loss in respect of partnership loss. On this ground itself as the CPC has made the adjustment without such claim being there, the intimation is liable to be quashed and I do so. 6. Even otherwise, as it is noticed that the intimation u/s.143(1) of the Act has been issued on 25.11.2021 and as on the said date, it was required under the first proviso to Section 143(1) of the Act that the intimation is to be issued to the assessee in respect of any adjustment that is being proposed to be done and as the same has not been issued to the assessee, therefore, the intimation issued u/s.143(1) of the Act is found to be unsustainable and on this ground also the same stands quashed. 7. In the result, appeal filed by the assessee stands allowed. Order dictated and pronounced in the open court on 13/01/2026. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 13/01/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), Printed from counselvise.com ITA No.2643/KOL/2025 6 आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "