TaxTMI 
TaxTMI 
2026 (2) TMI 319
X X X X Extracts X X X X
X X X X Extracts X X X X
....allenged is that it does not comply with the provisions of Section 143(1)(a). 2. It is the case of the Petitioner that before any adjustment is made, as more particularly stipulated in Section 143(1)(a), an intimation is to be given to the assessee of such adjustment either in writing or in electronic mode and also the response received from the assessee, if any, has to be considered before making any adjustment. In case no response is received from the assessee within 30 days of the issue of such intimation, adjustments can be made under Section 143(1)(a). 3. According to the Petitioner, in the facts of the present case, admittedly no such intimation was given prior to making the adjustment. Once this is the case, the intimation orde....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., no opportunity needs to be provided to the tax payer as contemplated under the first and second proviso of Section 143(1)(a). In other words, it was submitted that even if an opportunity was provided to the assessee, since it had failed to file the Return along with Form 10-IC by the due date as mentioned under Section 139(1), no alternative was left for the Department but to levy tax at the normal rate. Hence, according to the Department, in the facts of the present case, issuing any intimation to the assessee prior to passing an intimation order under Section 143(1)(a) would be an exercise in futility. Consequently, it was submitted that there is no merit in the Writ Petition and the same be dismissed. 6. We have heard Mr. Pardiwalla....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (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: Provided also that no adjustment shall be made under subclause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Petitioner. This is an undisputed fact. On this ground alone, the intimation order dated 1st December, 2025, issued under Section 143(1)(a), is liable to be quashed and set aside. We are unable to agree with the submission of the learned Advocate appearing on behalf of the Revenue that this exercise would be an exercise in futility because in the facts of the present case, admittedly, Form 10-IC was not filed by the due date. There could very well be a case where, after belatedly filing a return and belatedly filing Form 10-IC, and before the intimation order is passed under Section 143 (1)(a), the Petitioner could have obtained an order seeking condonation of delay in filing form 10-IC under Section 119(2)(b) of the IT Act. This could poss....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4,66,97,880/-, and no opportunity of being heard was granted to the Petitioner on this issue before the intimation was passed. This is, therefore, a clear breach of the principles of natural justice, and in any event in contravention of the jurisdictional requirements laid down in the first and second proviso to Section 143(1) of the IT Act. Further, the department in their Affidavit-in-reply have accepted the fact that no notice for the proposed adjustment was issued on the ICDS adjustment. Hence, on this ground alone the adjustment made in the intimation in respect of the ICDS adjustment of Rs. 1284,66,97,880/- is liable to be quashed and set aside." 12. In view of this foregoing discussion, the Petition succeeds and is allowed in term....