TaxTMI 
TaxTMI 
2006 (6) TMI 73
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....cts are not in dispute. For the assessment year 2003-04, the assessee-company returned a total income of Rs. 25,63,380. However, through an assessment order dated December 30, 2005, the Deputy Commissioner of Income-tax, under section 143(3) of the Act, determined the total income as Rs. 1,21,14,010. He determined the net tax payable by the asses-see at Rs. 45,14,870. The assessment order was served on the assessee on January 16, 2006. A notice of demand was issued under section 156 of the Act for the assessment year 2003-04. It was served on the assessee on January 16, 2006. According to this notice, the tax was payable by the assessee within thirty days of the date of service. Thus, the demand was required to be made good by the assessee ....
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.... as a matter of fact, the assessee was not obliged to make payments in terms of the notices issued to him for the assessment year 2003-04. Counter has been filed. There is no dispute raised with regard to the facts. But it is contemplated that in terms of section 245, before an adjustment is made, it is not necessary to issue a show-cause notice and the Department can adjust the amount, and what is required for such adjustment is only intimation in writing to the assessee. It is also contended by the Department that the notice of demand under section 156 of the Act for the assessment year 2003-04 was served on the assessee on January 16, 2006. He was required to pay the amount within thirty days. That does not mean that the demand could ....
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....under section 143(1) of the Act, which is the impugned intimation. Intimation under section 143(1) of the Act is an intimation regarding refund. Section 143(1) of the Act lays down: "143.(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,- (i) if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall" be deemed to be a notice of demand issued under....
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....amounts have already been adjusted. Therefore, there was no occasion for the assessee-petitioner to raise an objection to the adjustment. It may be true that section 245 of the Act does not contemplate a show-cause notice or an inquiry, but at the same time, it requires a prior intimation in writing, of the proposed action of adjustment. Admittedly, such a notice was not given to the petitioner. Learned counsel for the petitioner has drawn our attention to various judgments. They are: (1) A.N. Shaikh v. Suresh B. Jain [1987] 165 ITR 86 (Bom); (2) State Bank of Patiala v. CIT [1999] 239 ITR 421 (P & H); (3) J.K. Industries Ltd. v. CIT [1999] 238 ITR 820 (Cal); (4) CIT v. J.K. Industries Ltd. [2000] 245 ITR 457 (Cal) and (5) Shiv Narain Sh....