2024 (11) TMI 1451 - AT - Income Tax

Non-issue and service of the notice by the AO u/s 143(1)(a) - violation of statutory provision of Sec 143(1)(a) - HELD THAT - As per the provisions of the Act an intimation has to be given to the assessee whether in writing or in electronic mode before making such adjustments. The revenue authorities have been asked in the earlier hearing to submit the proof of issue of notice to the assessee which the revenue authorities failed to produce. Hence in the interest of speedy justice the appeal of the assessee is hereby allowed granting liberty to the Revenue to approach the Tribunal in case the right proof of issue of notice could be found. Assessee appeal allowed.

Summary

Summary:The Appellate Tribunal (ITAT Ahmedabad), per DR. BRR Kumar, Vice President, allowed the appeal filed by the Assessee against the order of the Commissioner of Income Tax (Appeals) for AY 2020-21. The key issue was the adjustment of Rs. 6,50,830/- made by CPC Bangalore under Section 143(1) of the Income Tax Act, 1961, without prior intimation to the Assessee.The Tribunal emphasized the statutory requirement under Section 143(1) 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." The Revenue failed to produce proof of such intimation despite being asked.Consequently, the Tribunal held that the appeal must be allowed in the interest of speedy justice, granting liberty to the Revenue to approach the Tribunal again if they can produce valid proof of notice issuance. The Tribunal did not adjudicate other grounds raised by the Assessee due to this procedural lapse.