143(1) Adjustment Without Prior Intimation Invalid; CPC Action Quashed

Satyagrah Chhavni Co-op. Housing Society Limited Vs ITO (ITAT Ahmedabad) The ITAT, Ahmedabad Bench held that any adjustment while processing return u/s 143(1) is invalid if no prior intimation is given to the assessee, as mandated by the proviso to s.143(1). In this case (AY 2020-21), the assessee—a co-operative housing society—filed its return declaring NIL income, claiming maintenance income of ₹97.29 lakh as deductible u/s 80P. While processing the return, CPC disallowed the deduction and added ₹97.29 lakh as business income, without issuing any prior notice/intimation. On a factual...