PALGANJ PRIYAMARY AGRICULTURE CREDIT CO OPERATIVE SOCIETY LTD,GIRIDIH V. ITO, GIRIDIH

ITA 44/RAN/2025

AI Insights

The case involves two appeals filed by the Palganj Priyamary Agriculture Credit Cooperative Society Ltd. against the orders of the ld. Addl/JCIT(A)-2, Jaipur, concerning the assessment years 2021-2022 and 2022-2023. The primary contention was the absence of a show cause notice before adjustments were made in the intimation under section 143(1) of the Income Tax Act. The assessee argued that the lack of this procedural step rendered the intimation and subsequent CIT(A) order invalid. The tribunal agreed, leading to the allowance of the appeals and the quashing of the intimation and CIT(A) order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788103 (ITAT-RANCHI)
• Duration Of Justice: 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 08-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KHUBCHANDT PANDYA
• Assessee Lawyers: DEVESH PODDAR

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC BENCH”, RANCHI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER (THROUGH HYBRID MODE) आयकर अपील सं./ITA No.43 & 44/RAN/2025 (निर्धारण वर्ा / Assessment Year :2021-2022 & 2022-2023) Palganj Priyamary Agriculture Credit Cooperative Society Ltd., Palganj, Giridih-825108 Vs. ITO Ward-3(4), Giridih स्थायी लेखा सं./PAN No. : AACAP 9649 P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्ाारिती की ओर से /Assessee by : Shri Devesh Poddar, AR राजस्व की ओर से /Revenue by : Shri Khubchand T Pandya, Sr. DR सुनवाई की तारीख / Date of Hearing : 25/11/2025 घोषणा की तारीख/Date of Pronouncement : 25/11/2025 आदेश / O R D E R These two appeals filed by the assessee against the order of the ld. Addl/JCIT(A)-2, Jaipur, both dated 23.01.2025 for the assessment year 2021-2022 & 2022-2023. 2. Shri Devesh Poddar, ld.AR represented on behalf of the assessee. Shri Khubchand T Pandya, Sr. DR appeared on behalf of the revenue. 3. It was submitted by the ld. AR that these two appeals are against the order u/s.143(1) of the Act issued by the CPC, which has been confirmed by the ld. CIT(A). It was the submission that as per the provisions of section 143(1) of the Act, before making any adjustment, a show cause notice has to be issued to the assessee. It was the submission that no show cause notice has been issued to the assessee, therefore, the intimation issued u/s.143(1) is liable to be quashed and in consequence thereof the order passed by the ld. CIT(A) deserves to be dismissed. Printed from counselvise.com ITA No.43&44/Ran/2025 2 4. At the time of hearing, Ld.Sr. DR was asked to show the show cause notice issued as per the proviso to Section 143(1) of the Act before issuance of the intimation u/s.143(1) of the Act. The Sr. DR was unable to show the copy of the show cause notice as required under the first proviso to Section 143(1) of the Act before making any adjustments in the intimation u/s.143(1) of the Act. 5. I have considered the rival submissions. A perusal of intimation u/s.143(1) of the Act also does not show of any show cause notice being issued to the assessee. Even the ld. CIT(A) has not taken into consideration that no show cause notice has been issued to the assessee before making adjustment in the order passed u/s.143(1) of the Act by the CPC. 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. This being so, as no show cause notice under the provisions of section 143(1) of the Act has been issued before making adjustment, the intimation issued u/s.143(1) of the Act in both the appeals of the assessee stands quashed and in consequence thereof the order passed by the ld. CIT(A) in both the appeals also stands unsustainable. 6. In the result, both appeals of the assessee are allowed. Order dictated and pronounced in the open court on 25/11/2025. Sd/- (GEORGE MATHAN) न्यायिक सदस्य / JUDICIAL MEMBER रधाँची Ranchi; दिनांक Dated 25/11/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.43&44/Ran/2025 3 आदेश की प्रनिलिपि अग्रेपर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Senior Private Secretary) आयकर अिीिीय अधर्करण, रधाँची / ITAT, Ranchi 1. अपीलार्थी / The Appellant- . 2. प्रत्यर्थी / The Respondent- 3. आयकि आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. निभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, रधाँची / DR, ITAT, Ranchi 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "