TaxTMI 
TaxTMI 
2026 (1) TMI 1485
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....of Rs. 1,15,08,631/- as quantified in clauses 13(d) and 13(e) of the Tax Audit Report as contemplated by Section 145(2), viz., the Income Computation and Disclosure Standard (for short "ICDS"). b) Subsequently, Respondent No. 1 issued a notice on 14 December 2022 proposing to make an adjustment under Section 143(1)(a) of the IT Act on three issues viz; Section 36(1)(va), Section 145A and Section 35(1)(iv) of the IT Act. The Petitioner filed its response on 30 December 2022 objecting to the three proposed adjustments. c) The Petitioner's case was selected for scrutiny and notices dated 23 June 2023 and 28 June 2023 were issued under Section 143(2) and Section 142(1) of the Act respectively. The Petitioner filed its response to these notices on 21 July 2023. d) Thereafter, Respondent No. 1 issued the impugned intimation dated 29 July 2023 under Section 143(1) of the IT Act determining the income of the Petitioner at Rs. 1515,81,25,530/- and raised a demand of Rs. 383,80,01,710/-. The reason for the increase was an ICDS adjustment of Rs. 1284,66,97,880/- made by Respondent No. 1 as against the voluntary adjustment of Rs. 1,15,08,630/- made by the Petitioner ....
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.... to by the Petitioner on 22 January 2024, 31 January 2024, 6 February 2024, 12 February 2024 and 16 February 2024 respectively. k) The assessment unit issued a show cause notice on 11 March 2024 for making proposed variations on six issues. The Petitioner filed its response on 15 March 2024 dealing with all the six issues. In none of the notices issued under Section 142(1) or in the show cause notice was any clarification sought on the adjustment made in respect of ICDS. l) Therefore, the Petitioner also filed a letter dated 21 March 2024 with the assessment unit pointing out that the intimation under Section 143(1) will merge with the order under Section 143(3) and requested to delete the erroneous ICDS adjustment. m) However, the Assessment unit passed an assessment order dated 26 March 2024 under Section 143(3) read with Section 144B of the Act without making any variation to the total income on the six issues raised in the show cause notice, but without considering the submission made on 21 March 2024, made a variation to the income of the Petitioner by considering the total income as computed under Section 143(1)(a) of Rs. 1515,81,25,530/-. The asses....
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.... Undoubtedly, the Petitioner has filed an appeal before CIT(A) against the impugned intimation in 2023 which is not disposed off till date in spite of the hearing being fixed twice and written submissions being filed on 10 October 2023 and 4 June 2025. The assessment order has been passed considering the income as per Section 143(1) without considering the specific submissions made on 21 March 2024. The Petitioner has filed rectification applications to correct the mistake apparent on record both in the intimation and the assessment order but no rectification order has been passed till date. The Petitioner filed an appeal with Respondent No. 4 against the assessment order and Respondent No. 4 has passed an order dated 27 September 2025 dismissing the appeal on the ground that he lacked jurisdiction to decide the issue arising in the intimation without considering the fact that the intimation would merge with the assessment order. Unable to obtain any redressal on this issue before any forum, the Petitioner was constrained to file the writ petition to challenge the intimation as being non-est and passed in breach of the principles of natural justice, contrary to the statutory requir....
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....ef by this Petition. The Respondent referred to the alternative contention of the Petitioner in this Petition and pointed out that the Court should grant a direction to Respondent No. 4 to dispose off the appeal in a time bound manner. 7. Secondly, the Respondent pointed out that the present petition is filed belatedly as the intimation under Section 143(1) was passed on 29 July 2023 and the Petitioner has approached this Hon'ble Court only in the month of November 2025. Therefore, the petition be disposed off with a direction to the Petitioner to pursue the appellate remedy. This is more so because if the Petition is disposed off by this Court the appeal of the Petitioner challenging the order passed under Section 143(3) would become infructuous. 8. In rejoinder, the learned Counsel for the Petitioner pointed out that it has filed this Petition as it has not obtained any redressal before any appellate forum and since the intimation is non-est and passed in breach of principles of natural justice and contrary to the statutory requirements stipulated in the first proviso to Section 143(1), such intimation should be quashed. The assessment order has not made any other additions....
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....: 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:]..." (emphasis supplied) 11. It is apparent from a perusal of the above reproduction that the first and second proviso to Section 143(1) of the IT Act specifically provides that no adjustment shall be made unless an assessee is given an intimation of the adjustment either in writing or in electronic mode and the response received from the assessee must be considered before making any such adjustment. In the present case, admittedly the Petitioner has not been given any intimation of the ICDS adjustment before passing the impugned intimation. The proposed adjustment under Section 143(1)(a) of the IT Act on 14 December 2022 did not raise any issue with regard to the ICDS adjustment of Rs. 1284,66,97,880/-, and no opportunity of being heard was granted to t....