2025 (11) TMI 1605

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....ssuance of an intimation u/s 143(1) of the Act. In support of admission of the additional ground the Ld.AR has placed reliance upon a plethora of judicial precedents. Upon consideration of the same we have decided to admit the impugned additional ground for admission. 3.0 As per brief factual matrix of the case Return of Income for AY-2023-24 was processed u/s 143(1) on 08.01.2024 raising a demand of Rs. 5,73,47,460/-. The impugned demand had arisen on account of non-credit of TDS claimed by the assessee amounting to Rs. 5,05,37,430/-. The denial of TDS credit was based upon provisions of Rule-37BA as total receipts in Form-26AS were Rs. 1567,40,67,611/- as against the receipts of Rs. 930,01,55,214/-. The action of the Revenue was confirmed by the Ld.CIT(A). The assessee is assailing the appellate order on the premise that show cause u/s 143(1)(a) was not issued prior to making of the adjustment. 4.0 The Ld.DR vehemently argued in favour of the order of lower authorities. It was stated that higher receipts were appearing in Form-26AS of the assessee as against those disclosed by the assessee in its Return of Income. The Ld.DR had argued that as per law TDS only can be allowed....

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....hapter VI-A under the heading "C.-Deductions in respect of certain incomes", if] the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made:] ^96[Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018;] (b) the tax ^97[, interest and fee], if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax....

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...., for the purpose of giving effect to the scheme 3 made under sub-section (1A), the Central Government may, by notification 3 in the Official Gazette, direct that any of the provisions of this Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued after the 31st day of March, ^4[2012]. (1C) Every notification issued under sub-section (1B), along with the scheme made under sub-section (1A), shall, as soon as may be after the notification is issued, be laid before each House of Parliament.] ^5[(1D) Notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2): Provided that the provisions of this sub-section shall not apply to any return furnished for the assessment year commencing on or after the 1st day of April, 2017.] Section 139 (9) of the Act Return of income. 20 139. 21 22[(1) Every person,- (a) being a company 23[or a firm]; or (b) being a person o....

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.... has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report;] (c) 17the return is accompanied by proof of- (i) the tax, if any, claimed to have been deducted ^19[or collected] at source ^20[***] and the advance tax and tax on self-assessment, if any, claimed to have been paid : ^21[Provided that where the return is not accompanied by proof of the tax, if any, claimed to have been deducted ^22[or collected] at source, the return of income shall not be regarded as defective if- ^23[(a) a certificate for tax deducted or collected was not furnished under section 203 or section 206C to the person furnishing his return of income;] (b) such certificate is produced within a period of two years specified under sub-section (14) of section 155;] (ii) the amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 (38 of 1974)* ; ^24[(ca) the return is accompanied by the proof of payment of tax as required under section 140B, if the return of income is a return furnished under sub-section (8A);]....

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....ering of an opportunity in this direction. As regards giving of an opportunity of being heard to the assessee u/s 143(1), we have noted that the statutory prescription is crystal clear. Section 143(1) extracted hereinabove clearly mandates that an opportunity of being heard is required to be given to an assessee in all cases where any adjustment is proposed to be made to the returned income before passing an order u/s 143(1)(a). It is trite law that when legal stipulations of a statute are unambiguously clear no different interpretations can be taken. We have noted that section 143(1)(a)(vi) postulates an adjustment to assessee total income based upon figures appearing in 26AS viz a viz income disclosed in return of income. Thus, as per the facts of the present case provisions of section 143(1)(a)(vi) were fully applicable. First proviso to section 143(1) postulates that an opportunity of being heard has to be given to the assessee by a mode including writing or electronic. The prescription of law is clear that no adjustment to the returned income can be made unless an opportunity is given to the assessee. In the instant case the same was not given and therefore the order of lower ....