TaxTMI 
TaxTMI 
2023 (10) TMI 454
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....ion of the AO of treating stipend receipts as salary income of the assessee and thereby confirming the addition of said income amounted to Rs. 9,61,984/-. Action of ld. CIT(A) is illegal, unjust, arbitrary and against the facts of the case. Relief may please be granted by deleting the said addition of Rs. 9,61,984/-. 2. In the facts and circumstances of the case and in law, the ld.CIT(A) has erred in not specifically adjuring the ground of the assessee wherein he objected that mistake apparent on record was not rectified by the AO u/s 154. Action of ld. CIT(A) is illegal, unjust, arbitrary and against the facts of the case. Relief may please be granted by allowing the rectification of apparent mistake 2.1 Apropos Ground No. 2 of the asse....
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.... assessee placed reliance on the decision of ITAT, Delhi Bench in the case of Garg Heart Centre and Nursing Home Pvt. Ltd. (ITA No. 1700/DEL/2022 whose relevant portion at para C.2(d) Page 25 is reproduced below. ''...(C2) In view of foregoing discussion, we come to the following conclusions:- .... (d) Addition by way of adjustment and intimation u/s 143(1) of Income Tax Act on debtable and controversial issue is beyond the scope of Section 143(1) of Income Tax Act. Revenue was clearly in error in making the aforesaid adjustments..'' Further reliance has been placed on the decision of Coordinate Bench of ITAT, Mumbai in the case of Kalpesh Synthetics (P) Ltd. vs DCIT (2022) 137 Taxmann.com 475 wherein it has been held that no adjustm....
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.... electronic mode, and "the response received from the assessee, if any" to be "considered before making any adjustment" makes the process of making adjustments under section 143(1), under the present legal position, an interactive and cerebral process. When an assessee raises objections to proposed adjustments under section 143(1), the Assessing Officer CPC has to dispose of such objections before proceeding further in the matter-one way or the other, and such disposal of objections is a quasi judicial function. Clearly, the Assessing Officer CPC has the discretion to go ahead with the proposed adjustment or to drop the same. The call that the Assessing Officer CPC has to take on such objections has to be essentially a judicious call, appro....
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....ess of finalizing the intimation under section 143(1) unless the reasons for such rejection are known, a meaningful appellate exercise can hardly be carried out. When the first appellate authority has no clue about the reasons which prevailed with the Assessing Officer- CPC, in rejecting the submissions of the assessee, because no such reasons are indicated by the Assessing Officer CPC anyway, it is difficult to understand on what basis the first appellate authority sits in judgment over correctness or otherwise of such a rejection of submissions. Whether the statute specifically provides for it or not, in our considered view, the need for disposal of objections by way of a speaking order has to be read into it as the Assessing Officer CPC,....
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....this ground and after going through the decisions by the respective parties, the Bench finds that as per peculiar facts of the case that in one year, the same amount was treated as stipend exempt u/s 10(16) of the Act and in year two, said amount was treated to be taxable income. Hence, in my view, the issue is not simple but is debatable one and moreover no reason was assigned by the CPC for adjustment. Considering these facts, the Bench noticed that the assessee had filed rectification application u/s 154 of the Act for rectification of mistake apparent on record i.e. adjustment of debatable issue u/s 143(1) was without assigning any reason for doing so. The Bench from the records now reach to the conclusion that mechanism of application ....
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....f the Bench when an assessee raises objections to proposed adjustments under section 143(1), the Assessing Officer CPC has to dispose of such objections before proceeding further in the matter-one way or the other, and such disposal of objections is a quasi judicial function. Clearly, the Assessing Officer CPC has the discretion to go ahead with the proposed adjustment or to drop the same. The call that the Assessing Officer CPC has to take on such objections has to be essentially a judicious call, appropriate to facts and circumstances and in accordance with the law, and the Assessing Officer CPC has to set out the reasons for the same. Whether there is a provision for further hearing or not, the Bench is of the view that once objections a....