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2023 (12) TMI 1160 - ITAT MUMBAIAddition in an intimation order u/s 143(1) - AO/CPC jurisdiction to make an adjustment in an Intimation Order u/s. 143(1) - exemption claimed u/s 10 was denied and treated as profits and gains of business or profession.HELD THAT:- According to the provisions of section 143 (1) (a) of the act where the total income or loss is required to be computed adjustment prescribed in clause number (i) to (vi) can be made only after giving an intimation to the assessee for such adjustment either in writing or in electronic mode. We do not find any such intimation is given to the assessee of such adjustment holding that the claim of exemption made by the assessee is incorrect. Therefore, such adjustment is made in contravention of the provision of section 143 (1) of the Act and hence, it is not sustainable. Even otherwise on the merits of the issue we find that exemptions claimed by the assessee is with respect to dividend from mutual fund which is exempt under section 10 (35) of the income tax act, interest from tax free bond which is exempt under section 10 (15) of the Act and the long-term capital gain on consolidation of mutual funds which is exempt under section 10 (38) of the act. Therefore, even otherwise the impugned income in dispute is exempt which is confirmed by the ld. CIT (A) also. Therefore, as the impugned adjustment is without intimation to the assessee and further the income is held to be exempt by the CIT (A) , we do not find any reason to sustain the intimation passed u/s 143(1) of The Act . In view of this Ground no 1 is allowed.
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