Case Law Details
Himanshu Gupta Vs ITO (ITAT Jaipur)
ITAT Jaipur held that addition by way of adjustment and intimation u/s 143(1) of the Act on debatable and controversial issue is beyond the scope of Section 143(1) of the Income Tax Act.
Facts- The assessee is a Doctor. For 3 years, the assessee did his internship with Medanta Hospital. Consequently, the assessee received the stipend for the same and the hospital deducted TDS on such payment. As per the case of the assessee, the payment of stipend is exempt as income and claimed credit of TDS which was deducted on the same.
However, it is important to mention the fact that out of 3 years, in one year and year three the assessee was allowed TDS credit and was accordingly issued a refund but in the subsequent year, the assessee received notice under section 143(1) of the Act intimating the assessee that the stipend is proposed to be added to the total income of the assessee.
Ignoring the response of the assessee and ignoring the fact that in two years the income was considered as exempt and without assigning any specific reason adjustment was made in the intimation order passed u/s 143(1) of the Act. Now the moot question before us is as to whether any addition by way of adjustment u/s 143(1) can be made on debatable issue or not.
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