Satishchandra Hiralal Berawala Vs DCIT (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, allowed the assessee’s appeal against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2020-21.
The assessee had challenged an adjustment of ₹6,50,830 made by the Centralised Processing Centre (CPC), Bengaluru under Section 143(1) of the Income-tax Act, 1961. Among the grounds raised, the assessee contended that the adjustment had been made without issuance and service of the mandatory notice contemplated under Section 143(1)(a) of the Act. The assessee also raised issues relating to the non-speaking nature of the order, exemption under Section 10(10AA)(ii), and relief under Section 89(1).
Before the Tribunal, the assessee specifically argued that no notice had been issued prior to making the adjustment under Section 143(1)(a). The Tribunal examined the proviso to Section 143(1), which stipulates that no such adjustment shall be made unless an intimation regarding the proposed adjustment is given to the assessee either in writing or through electronic mode.
The Tribunal noted that, during earlier hearings, the Revenue authorities had been directed to produce proof demonstrating issuance of the notice to the assessee. However, despite such opportunity, the Revenue failed to furnish any evidence establishing that the mandatory intimation had been issued before making the adjustment.
