TAGORE CHEMICALS INDIA PVT. LTD.,CHENNAI V. ITO, CORPORATE CIRCLE-3(1), CHENNAI

ITA 2630/CHNY/2024

AI Insights

The case involves M/s. Tagros Chemicals India Pvt. Ltd., which appealed against the order of the CIT(A) concerning an intimation issued by the Centralized Processing Center (CPC) under section 143(1) of the Income Tax Act. The initial adjustments and disallowances made by the CPC were contested by the assessee, leading to an appeal before the CIT(A). However, the CIT(A) dismissed the appeal as infructuous, stating that the intimation under section 143(1) did not survive post the issuance of notice under section 143(2). The Tribunal found that the CIT(A) should have decided the appeal on merits, given the provisions of section 143(1D), which allow for processing under section 143(1) despite the issuance of notice under section 143(2) for assessment years commencing on or after April 1, 2017.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29471 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR LD.
• Assessee Lawyers: ABHISHEK MURALI LD
• Keywords: Set aside
• Section: 143(3); 143(2); 143(1)

Judgement Text

" आयकर अपीलीय अिधकरण “सी” \u000eा यपीठ चे\u0013ई म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI मा ननीय \u0019ी मनोज क ुमा र अ वा ल ,लेखा सद\" एवं मा ननीय \u0019ी मनु क ुमा र िग&र, \u000eा ियक सद\" क े सम'। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं ./ ITA No.2630/Chny/2024 (िनधा (रण वष( / Assessment Year: 2018-19) M/s. Tagros Chemicals India Pvt. Ltd. 72, Raja Annamalai Building, Marshals Road, Egmore, Chennai-600 008. बना म / Vs. ITO Corporate Circle-3(1), Chennai. \u0001थायीलेखासं./जीआइआरसं./PAN/TAN No. AAACT-2952-K (अपीलाथ\u001a/Appellant) : ( थ\u001a / Respondent) अपीलाथ\u001aकीओरसे/ Appellant by : Shri Abhishek Murali (CA) – Ld.AR थ\u001aकीओरसे/Respondent by : Shri R.Clement Ramesh Kumar (CIT) -Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 31-12-2024 घोषणाकीतारीख /Date of Pronouncement : 01-01-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16-08-2024 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 02-11-2019. 2. From the facts it emerges that the assessee’s return of income was processed u/s 143(1) by CPC on 02-11-2019 making certain adjustments / disallowances. In the meanwhile, the case was subjected 2 to regular scrutiny and notice u/s 143(2) was issued on 23-09-2019 and an assessment was framed u/s 143(3) subsequently. The starting point of income computation by Ld. AO was income as determined by CPC. 3. Aggrieved by initial adjustment / disallowance as made by CPC on 02-11-2019, the assessee preferred further appeal before Ld. CIT(A). However, Ld. CIT(A) held that intimation issued u/s 143(1) subsequent to the issue of notice u/s 143(2) would not survive. Accordingly, the appeal was dismissed as infructuous without going into the merits. Aggrieved, the assessee is in further appeal before us. 4. We find that the provision of sub-section (1D) of Sec. 143(1) has been given a sunset clause. As per sub-section (1D), the processing of return of income shall not be necessary where a notice has been issued to the assessee u/s 143(2). However, proviso provides that the provisions of this sub-section shall not apply to any return furnished for assessment year commencing on or after the 1st day of April, 2017. In other words, from AY 2017-18 onwards, the processing u/s 143(1) could be done despite the issuance of notice u/s 143(2). In such a case, Ld. CIT(A) should have decided the appeal on merits. Accordingly, we set aside the impugned order and remit the appeal back to the file of Ld. CIT(A) for adjudication on merits. The assessee is directed to substantiate its case. 5. The appeal stand allowed for statistical purposes. Order pronounced on 1st January, 2025 Sd/- (MANU KUMAR GIRI) \u000eा ियक सद\" / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद\" / ACCOUNTANT MEMBER 3 चे2ई Chennai; िदनांक Dated :01-01-2025 DS आदेशकीGितिलिपअ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001a/Appellant 2. थ\u001a/Respondent 3. आयकरआयु;/CIT Chennai. 4. िवभागीय ितिनिध/DR 5. गाड@फाईल/GF "