TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1485
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng of the appeal is neither intentional nor for deriving any undue benefit, and thus, we condone the delay in filing of the appeal and admit the appeal for hearing. 3. The brief facts of the case are that the assessee is a limited company filed its return of income for AY 2020-21 declaring loss of Rs.87,37,008/-. The Asst. Director of Income Tax, CPC (AO) processed the return of income, and issued intimation u/s. 143(1)(a) of the Income Tax Act, 1961 (in short "the Act"), and determined total income of Rs.4,99,78,000/- by making various additions, including additions towards expenditure of capital in nature u/s. 37(1) of the Act, disallowance of penalty u/s. 37(1) of the Act, disallowance of contribution to PF u/s. 43B of the Act, etc. The assessee challenged the intimation issued u/s. 143(1)(a) of the Act, before the First Appellate Authority, and the Ld. CIT(A) for the reasons stated in their appellate order dated 04.11.2022, partly allowed appeal filed by the assessee, where, the Ld. CIT(A) rejected legal ground taken by the assessee in light of proviso to Sec.143(1) of the Act, on the issue of non-issuance of show cause notice as required under said section before issuing inti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hrough orders of the authorities below. As per the provisions of Sec.143(1)(a) of the Act, and proviso provided therein, no adjustment shall be made unless an intimation is given to the assessee of such adjustments either in writing or electronic mode. From the proviso provided u/s. 143(1)(a) of the Act, it is abundantly clear that before issuing intimation u/s. 143(1) of the Act, the AO should issue show cause notice on proposed adjustment to total income. Unless, the AO communicates to the assessee on proposed adjustment as per the provisions of Sec.143(1)(a) of the Act, intimation issued u/s. 143(1) of the Act, is unlawful, and thus, additions proposed in the said intimation cannot be sustained. This proposition is supported by the decision of the ITAT Ahmedabad Bench in the case of Araham Pumps (supra), where the Tribunal after considering relevant provisions to sec.143(1)(a) of the Act, and proviso, provided therein held as under: 7. Ongoing through the above section and proviso attached therein, the total income or loss shall be computed after making following adjustment mainly of any arithmetical error in the return. Incorrect claim, if such incorrect claim is apparent fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Ld. DR present for the Revenue to verify the records and ascertain whether the AO has issued mandatory communication proposing the adjustment before issuing intimation u/s. 143(1) of the Act, for which, the Ld. DR vide his written submissions dated 02.06.2023 stated that the details of communication proposing the adjustment are not available for extraction as the CPC-2.0 Project was in transition phase for AY 2020-21. From the above, it is clear that the details of communication issued by the AO as per the first proviso to Sec.143(1)(a) of the Act, is not available with the AO. Therefore, we are of the considered view that intimation issued u/s. 143(1) of the Act, with various adjustments to total income cannot be sustained, and thus, the intimation issued u/s. 143(1)(a) of the Act dated 11.10.2021 is held to be unsustainable in law, and thus, we direct the AO to delete additions made towards disallowance of various expenses in the said intimation. 8. The assessee has challenged the order of the Ld. CIT(A) on the issue of disallowance of various expenses. Since, the intimation issued u/s. 143(1)(a) of the Act, is held to be invalid/unsustainable under the law, consequent additi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... than Rs.250 Crs. The AO computed tax liability of the assessee by applying rate of tax @30% on the ground that gross receipts/turnover of the assessee for AY 2017-18 was more than Rs.250 Crs. The Ld. CIT(A) after considering relevant details filed by the assessee, including financial statements for AY 2017-18 observed that if you exclude other income, gross turnover/gross receipts from the business of the assessee for AY 2017-18, was less than at Rs.250 Crs., and thus, the assessee has rightly adopted concessional rate of tax @25%. Aggrieved by the order of the Ld. CIT(A), the Revenue is in appeal before us. 11.1 The CIT-DR referring to financial statements of the assessee for AY 2017-18 submits that as per declared financial results, the turnover of the assessee was more than Rs.250 Crs., which is evident from financial statement of the assessee's business turnover was to the tune of Rs.173.30 Crs. and further, a sum of Rs.235.51 Crs. was reported under 'other income'. He further referring to the provisions of Part-1, Chapter-2 of Finance Act, 2019 submitted that for the purpose of applying 25% concessional rate of tax, the Act specifies total turnover or gross receipts shall no....