2023 (7) TMI 1034

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.... may be held that the appellant has been denied natural justice by the Revenue Authorities in respect of Intimation passed u/s 143(1) on 2-06-2016, in as much as: a) No reason is given for variation in Returned Total Income of Rs25,09,290 and Income Computed u/s 143(1) of Rs 37,83,040. b) No opportunity was given to the appellant to show that the above variation made by the Central Processing Centre was wrong. 2. On the facts and in the circumstances of the case, appellant prays that its Total Income as returned be accepted as its Total Income as Computed u/s 143(1) as well as Assessed u/s 143(3)." 2. Brief Facts of the Case : The assessee is a doctor. He filed return of Income on 30/9/2015 declaring total income at Rs. 25,09,290/-.....

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....s under section 143(1) no opportunity has been given to the assessee. There is no application of mind. The order under section 143(1) has been passed without giving any reasons. Therefore, it is void-ab-initio. The ld.AR submitted that the Department has not even considered the rectification application filed by the assessee. The ld.AR filed copies of order under section 143(1) and other documents. The AR demonstrated that no opportunity was provided by the CPC before making the adjustment. The Ld.AR also submitted that the adjustment made by the CPC is outside the purview of section 143(1) of the Act. Hence the order is void ab intio. The ld. Departmental Representative's submission : 4. The ld.DR relied on the order of the Assessing Off....

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.... namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowab....

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....timation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a). (1A) For the purposes of processing of returns under sub-section (1), the Board may make a scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or the refund due to, the assessee as required under the said sub-section. (1B) Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act relating to processing of returns shall not apply or shall apply with such exceptions, mod....

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....tice to the assessee under section 143(2) and, after hearing the submissions of the assessee, decide the question in accordance with law. He cannot, unilaterally and without any reference to the assessee, send an intimation rejecting the entire profit and loss account of the assessee-company and substituting for it his own calculations. This is neither the correction of a clerical error nor is it the correction of an arithmetical error, as is submitted in the alternative by Dr. Balsubramaniyam. For the reasons which we have set out earlier, the ITO has, therefore, acted beyond his jurisdiction in calculating the total income of the company in the manner in which he has done in the present case." Unquote 7.2 Thus, the Hon'ble Jurisdictional....