Validity of assessment under Section 143(1)(a): mandatory intimation required before adjustments, intimation order quashed.

Failure to issue the intimation required by the first proviso to Section 143(1)(a) renders any adjustment in the filed return void because the proviso is mandatory and requires written or electronic notice and an opportunity to respond. The court held that absent such intimation no adjustment can be made and quashed the intimation order dated 1 December 2025. The court rejected Revenue's argument that issuing the intimation would be futile, explaining the assessee might have procedural responses (including condonation applications) that could affect the proposed adjustment, so the mandatory procedure must be followed.

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Issues: Whether an intimation passed under Section 143(1)(a) of the Income-tax Act, 1961 is valid where no prior intimation as required by the first proviso to Section 143(1)(a) was issued to the assessee.

Analysis: The statutory text of Section 143(1)(a) and its first and second provisos mandate that before any adjustment is made in processing a return the assessee must be given an intimation of the proposed adjustment either in writing or electronic mode and any response received within thirty days must be considered. The proviso uses mandatory language that no adjustment 'shall be made' unless the intimation requirement is complied with. Non-compliance with these jurisdictional requirements engages principles of natural justice because the assessee is deprived of an opportunity to present grounds (including applications for condonation under Section 119(2)(b)) before any adjustment is finalized. The Revenue's contention that providing such intimation would be futile where Form 10-IC was belatedly filed was rejected because the Department cannot pre-judge the possible responses or reliefs that the assessee might obtain; statutory compliance is required in all cases. The Court further relied on the reasoning in the earlier decision addressing identical provisos and non-issuance of intimation, which found such non-compliance fatal to the intimation.

Conclusion: The intimation dated 1st December, 2025 issued under Section 143(1)(a) is quashed for failure to comply with the mandatory intimation and opportunity-to-respond requirements; the Revenue may re-issue an intimation complying with the provisos and consider any response before passing a fresh intimation.

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