TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1607
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....ax (Appeals)-1, Nashik [hereinafter referred to as "the CIT(A)"], dated 13.03.2024, passed under section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"], for the Assessment Year 2022-23. The impugned order arises from the intimation issued by the Centralized Processing Centre, Bengaluru ("CPC") under section 143(1) dated 06.03.2023. Facts of the Case 2. The relevant facts of the case are that the assessee, an individual resident, filed his original return of income for A.Y. 2022-23 in ITR-3 on 30.07.2022 declaring total income at Rs. 1,09,84,741/-. Thereafter, a revised return of income was filed on 10.11.2022 declaring total income of Rs. 1,09,81,920/- wherein the assessee claimed refund of Rs. 69,250/-, primar....
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....,284/- declared in the return. Interest under sections 234B and 234C aggregating to Rs. 47,585/- was also levied as against Rs. 2,490/- shown by the assessee. Against total taxes paid of Rs. 37,55,014/- (advance tax Rs. 4,00,000/-, TDS Rs. 29,42,544/- self-assessment tax Rs. 4,12,470/-), CPC determined net refund of Rs. 1,153/- as against refund of Rs. 7,12,240/- claimed. After adjustment of Rs. 71,880 towards earlier refund, net demand of Rs. 70,730/- was raised. the assessee preferred appeal before the CIT(A), challenging the action of CPC, Bengaluru. The grounds of appeal raised before the CIT(A) broadly challenged: (i) adjustment without issuance of mandatory notice under section 143(1)(a) thereby violating natural justice, (ii) lack of....
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....efore us raising following grounds of appeal: "1. 143 1 a The Ld Addl JCIT A grossly erred on facts and in law in dismissing the appeal without giving valid reason and relying upon inapplicable case law etc while adjudicating the preliminary issue raised regarding the violation of statutory provision of Sec 143 1 a of the Income tax Act 1961 the Act in the form of non issue and service of the notice by the AO u s 143 1 a of the Act before making the adjustment of RS 1471010 2. 143 1 The Ld Addl JCIT A grossly erred on facts and in law in dismissing the ground no 2 raised in the appeal as regards jurisdiction of Ld AO to pass the order u s 143 1 making the addition to the declared income. 3. 143 1....
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....n or evidence in support of his claim. The Learned AR further submitted that in the interest of justice, and in order to provide the assessee an effective opportunity of being heard, the matter may be restored back to the file of the Assessing Officer for fresh adjudication on merits. 7. In reply, the Learned Departmental Representative (DR) supported the orders of the lower authorities. 8. We have carefully considered the rival submissions, perused the material placed on record, and duly taken note of the decisions placed before us. The limited issue before us is whether the CPC, while processing the return under section 143(1), was justified in making an adjustment to the assessee's claim of exemption under section 10(10AA)(ii) with....
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.... intimation, the CPC is empowered to make such adjustments. Here, in this case, the assessee was not given any intimation as per 1st proviso to section 143(1)(a) of the Act and CPC straight away made adjustments in 143(1) proceedings and communicated to the assessee by reducing the refund claimed by the assessee. The assessee in his written submission also relied upon Co-ordinate Bench decision in the case of Arham Pumps Vs. DCIT in ITA No. 206/Ahd/2021 dated 27-04-2022 wherein it is held as follows: "....8. On going through the above intimation made under section 143(1), CPC has not followed the above provisos by giving proper opportunity to the assessee to defend its case as per the first proviso to section 143(1)(a). Further, th....