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TMI Blog2024 (10) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961 ('Act'). 2. The captioned appeal of the assessee was heard and the order was pronounced on 3rd November, 2022. However, through the Miscellaneous Application No. 3/GTY/2023, it was brought to the notice of this Tribunal that ground no.3 raised by the assessee has not been adjudicated by this Tribunal. Finding merit in the Miscellaneous Application, vide order dated 11.09.2023 of MA No. 3/GTY/2023, the appeal bearing ITA No.296/GTY/2018, was recalled for the limited purpose of adjudicating ground no.3 raised by the assessee and the same read as under:- ""3. For that on the facts and circumstances of the case, the ld. CIT(A) was not justified in confirming the disallowance of statutorily allowable deduction unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se received from the assessee if any shall be considered before making any adjustment and in a case, where no response is received within 30 days of the issue of such intimation, such adjustments shall be made. 6. Before us, the ld. Counsel for the assessee has contended that no prior intimation was given to the assessee before making the alleged adjustment or denying deduction u/s 80IE of the Act. We note that under similar set of facts and circumstances, in the case of Smt. Neelam Pachisia, Bangalore (supra), where the assessee has claimed deduction u/s 80IC of the Act for A.Y. 2016-17 and prior to denying the deduction, CPC had not given any opportunity to the assessee by way of giving intimation. This issue has been dealt by this Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the clauses (iii) to (vi) was inserted into sec.143(1) of the Act by Finance Act, 2016 w.e.f. 1.4.2017. There is no doubt that clause (v) of the amended sec. 143(1) provides for disallowance of deduction claimed u/s 80IC shall be disallowed, if the return of income is furnished beyond the due date prescribed u/s 139(1) of the Act. However, the said clause was inserted with effect from 1.4.2017 and hence, the amended provisions shall apply only from AY 2017- 18. Since the year under consideration is AY 2016-17, the above said provisions shall not apply to the year under consideration. 5. The Ld D.R, on the contrary, submitted that the return of income was processed on 25.06.2017, i.e., after 1.4.2017 and hence the claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 can be applied. In that case, in our view, the proviso mandating giving of intimation to the assessee to the proposed adjustment should have also been followed by the revenue. It is so because, the said proviso was also inserted in sec.143(1) along with clauses (iii) to (vi) by Finance Act, 2016. Since no such intimation was given to the assessee, the impugned adjustment is liable to be deleted. The Ld D.R invited our attention to the provisions of sec.80AC of the Act. However, the controversy here is related the power of the AO in processing return of income u/s 143(1) of the Act. Hence we are of the view that we need not examine the provisions of sec.80AC of the Act at this stage. 8 Accordingly, we set aside the order passed by Ld CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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