Coforge Limited Vs DCIT (ITAT Delhi)
ITAT Delhi Quashes Intimation u/s 143(1): Adjustments on 80M Deduction & GST Refund Mis-Match Beyond Jurisdiction – Debatable Issues Beyond 143(1) Jurisdiction
Coforge Ltd., a listed IT solutions company, filed return declaring income of ₹99.75 crore & refund claim of ₹9.40 crore. CPC issued intimation u/s 143(1) on 17.10.2022 making two adjustments: (i) disallowance of deduction u/s 80M & (ii) addition of GST refund based on mismatch in Tax Audit Report. CIT(A) gave partial relief on GST mismatch but upheld validity of intimation. Both parties filed cross-appeals.
Assessee’s Contentions:
- Adjustments u/s 143(1) are limited to clear errors/apparent claims under clauses (i)–(vi). Disallowance of 80M & GST mismatch are debatable issues outside its scope.
- CPC ignored reply dated 05.07.2022 to draft intimation, violating principles of natural justice.
- Relied on SC in Kvaverner John Brown Engg (India) Pvt. Ltd. (170 Taxman 304), Delhi HC in Easter Industries Ltd. Vs. UOI (349 ITR 324), Calcutta HC in Mintri Tea Co. (P.) Ltd. (223 CTR 241) holding that debatable issues cannot be adjusted u/s 143(1)(a).
Revenue’s Arguments:
- Once regular assessment u/s 143(3) was completed, validity of 143(1) intimation cannot be challenged.
- CIT(A) erred in granting relief on GST mismatch without verification.
Tribunal’s Findings:
- AO/CPC has limited jurisdiction u/s 143(1)(a) to arithmetical errors & incorrect claims apparent from record. Disallowance of 80M & GST refund mismatch are debatable & outside its purview.
- CPC failed to consider assessee’s objections & passed intimation in violation of natural justice.
- Following Delhi HC in Easter Industries Ltd. & other precedents, Tribunal quashed the intimation dated 17.10.2022.
- Consequently, Revenue’s appeal also dismissed & Assessee’s appeal allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
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