Section 143(1) Adjustment without Notice Invalid – Carry Forward of Loss & Unabsorbed Depreciation Allowed by ITAT Kolkata

ITO Vs United Provinces Sugar Company Pvt. Ltd. (ITAT Kolkata) In this case, CPC passed intimation u/s 143(1) while processing return and disallowed carry forward of business loss ₹22.62 Cr and unabsorbed depreciation ₹31.68 Cr without issuing mandatory notice u/s 143(1)(a). CIT(A) allowed assessee’s appeal holding adjustment void ab initio, which was affirmed by ITAT. The assessee had filed return for AY 2024-25 claiming refund after set-off of brought forward losses, and such losses were consistently accepted in earlier years’ intimations. However, CPC made adjustment without giving ...