TMI Blog2023 (12) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso, when the assessee replies the same shall be considered before making any adjustments u/s. 143(1)(a) and in case, the assessee fails to response within 30 days of issue of such intimation, the CPC is empowered to make such adjustments. Here, in this case, the assessee was not given any intimation as per 1st proviso to section 143(1)(a) of the Act and CPC straight away made adjustments in 143(1) proceedings and communicated to the assessee by reducing the refund claimed by the assessee. Intimation passed u/s. 143(1) dated 15-07-2021 is violation of 1st proviso to section 143(1)(a) of the Act by not offering hearing to the assessee. Therefore the entire proceedings u/s. 143(1) is vitiated and invalid in law. Appeal filed by the Assessee is allowed. - SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER For the Appellant : Written Submission For the Respondent : Shri Sanjay Kumar, Sr. D.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the order dated 17.08.2022 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, thereby upheld the disallowance made u/s. 10(10AA) of the Act and dismissed the assessee appeal. 7. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. 143(1)(a) The Ld CIT A grossly erred on facts and in law in dismissing the appeal without adjudicating the preliminary issue raised regarding the violation of statutory provision of Sec. 143(1)(a) of the Income tax Act 1961 the Act in the form of non-issue and service of the notice by the AO u/s 143(1)(a) of the Act before making the adjustment of Rs. 7,41,610/-. 2. 143(1)(a) The Ld. CIT A grossly erred on facts and in law in dismissing the appeal without adjudicating the ground regarding non speaking order of the Ld. AO passed u/s 143(1). 3. Sec 10 (10AA)(ii) wrongly disallowed The Ld. CIT(A) has grossly erred 254 in law and is not justified in confirming the addition made by the Ld. AO and not allowing the exemption exceeding Rs. 3 lakhs u/s. 10(10AA)(ii) of the Act considering the invalid Gazette Notification No 50588 E dated 31.05.2002 issued by CBDT effective 01.04.1998. 4. Sec. 89(1) wrongly disallowed The relief on the LE amount exceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported the orders passed by the Lower Authorities and he could not bring to our notice that any communication in writing or in electronic mode was served by CPC to the assessee before making adjustment u/s. 143(1) of the Act. 10. We have given our thoughtful consideration and perused the materials available on record including the written submission filed by the assessee. From perusal of 143(1) intimation dated 20.09.2021, the assessee s claim of refund of Rs. 3,40,120/- was reduced to Rs. 85,600/- by making addition in the total income. We notice from the footnote at Page No. 13 of the intimation order which reads as follows: NOTE : 1. Interest u/s 244A of the Income Tax Act, 1961 is computed up to the date of issue of the refund. 2. The refund determined in this intimation, along with interest u/s 244A is subject to adjustment of arrear demand, if any, u/s. 245 3. The Refund is issued by the State Bank of India (Refund Banker) on behalf of the Income Tax Department. The details of the status of the Refund can be obtained from website (www.tin-nsdl.com) under Status of Tax Refunds. In case of any difficulty or delay in the receipt of refund, kindly call the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018; 10.2. As per first proviso to section 143(1)(a), the total income or loss shall be computed after making following adjustments namely (i) arithmetical error in the return, (ii) incorrect claim which is apparent from any information in the return, then CPC is entitled to make adjustments as per 1st proviso of Section 143(1)(a) by giving an intimation to the assessee either in writing or in electronic mode before making such adjustments. In response to first proviso, when the assessee replies the same shall be considered before making any adjustments u/s. 143(1)(a) and in case, the assessee fails to response within 30 days of issue of such intimation, the CPC is empowered to make such adjustments. Here, in this case, the assessee was not given any intimation as per 1st proviso to section 143(1)(a) of the Act and CPC straight away made adjustments in 143(1) proceedings and communicated to the assessee by reducing the refund claimed by the assessee. The assessee in his written submission also relied upon Co-ordinate Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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