AI Drafter 
TaxTMI 
TaxTMI 
2025 (11) TMI 42
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....1 (hereinafter referred to as 'the Act') for the Assessment Year (AY) 2022-2023. 2. The assessee has raised the 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 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 Ld AO u/s 143(1)(a) of the Act before making the adjustment of Rs. 334000 2. 143(1) The Ld Addl JCIT A grossly erred on facts and in law in not considering and adjudicating the raised ground in the appeal that the addition made by the Ld AO is without jurisdiction and au....
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....y exempt, thereby making an addition of Rs. 3,34,000/- to the total income. The total income under section 143(1) of the Act was computed at a figure of Rs. 95,60,973/- as against Rs. 92,26,967/- declared by the assessee. 4. Aggrieved by the said intimation, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), contending that the adjustment made by the CPC was in violation of the principles of natural justice and contrary to the provisions of section 143(1)(a) of the Act. The assessee submitted that no prior intimation or opportunity of being heard was granted before making the said adjustment as mandated under the first proviso to section 143(1)(a) of the Act. It was further contended that the CPC did not have j....
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....employees for the purpose of availing full exemption. Accordingly, the exemption was correctly restricted by CPC to Rs. 3,00,000/- in accordance with law. The CIT(A) further noted that the CBDT Notification No. 31/2023 dated 24.05.2023 enhancing the limit of exemption for leave encashment to Rs. 25,00,000/- is applicable prospectively from 01.04.2023 and not to the year under appeal, i.e., Assessment Year 2022-23. In view of these findings, the appeal of the assessee was dismissed. 5. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. Before us, the ld. counsel for the assessee reiterated the submissions made before CIT(Appeals). In response, Ld. DR placed reliance on the o....
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....-that no one should be condemned unheard. In this regard, the issue is squarely covered in favour of the assessee by several decisions of various Benches of the Tribunal. In Devendra Singh Bhaskar v. DCIT [IT Appeal No. 431 (Ahd) of 2022, order dated 11.10.2023], the Coordinate Bench of the ITAT, Ahmedabad, after an elaborate consideration of the statutory provisions and earlier judicial pronouncements, held as under: "10.2. As per first proviso to section 143(1)(a), the total income or loss shall be computed after making following adjustments namely (i) arithmetical error in the return, (ii) incorrect claim which is apparent from any information in the return, then CPC is entitled to make adjustments as per 1st proviso of Section ....
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.... the 1st proviso of section 143(1) of the Act, but proceeded with the case on merits and also confirmed the addition made by the CPC. The ld.NAFC is thus erred in conducting the faceless appeal proceedings in a more mechanical manner without application of mind. We therefore hereby quash the intimation issued by the CPC and allow the appeal filed by the assessee." 11. Respectfully following the above decision of ours which was again challenged by the Revenue by way of an M.A. No. 59/Ahd/2022. The same was also dismissed by this Bench vide order dated 03-05-2023. Even in the present case, we notice that the intimation passed u/s. 143(1) dated 15-07-2021 is violation of 1st proviso to section 143(1)(a) of the Act by not offering hear....