Tax Rate Adjustment Overturned: Procedural Fairness Prevails in Complex Assessment Dispute Involving Input Credit and Income Calculation

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....ITAT allowed the assessee's appeal challenging tax computation. The CPC's adjustment of tax rate from 25% to 30% was deemed unjustified, primarily because the adjustment was made on a debatable issue regarding gross turnover calculation without providing the assessee an opportunity to be heard, which violated the first proviso to section 143(1). The tribunal found that the issues surrounding service tax input credit, interest income, and recovery of bad debts constituted a complex interpretative matter that could not be summarily resolved through a unilateral adjustment. Consequently, the computational order was set aside, restoring the original tax assessment at 25%.....