2026 (3) TMI 941

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....itted that the return of income was processed and the CPC, Bengaluru issued intimation u/s. 143(1)(a) of the Act, dt. 10-03-2021 proposing adjustment by way of disallowance of gratuity u/s. 43B of the Act and addition on account of variance in Schedule BP in ITR form and thereafter intimation u/s. 143(1) of the Act was issued on 28-03-2021, wherein the adjustments were made in terms of disallowance of gratuity paid u/s. 43B amounting to Rs. 1,49,35,897/-, addition of Rs. 36,22,327/- on account of variance in Schedule BP in ITR and determined the total income in excess by Rs. 16,82,483/-. It was further submitted that as far as the claim of deduction u/s. 10AA of the Act is concerned, there was no dispute and the same was clearly allowed in ....

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....f disallowance of deduction claimed u/s. 10AA of the Act which has been made by the CPC, Bengaluru for the first time while passing the rectification order u/s. 154 of the Act, dt. 15-06-2021. 5. It was submitted that the assessee thereafter carried the matter in appeal before the Ld.CIT(A), specifically Ground No. 3 was raised before the Ld.CIT(A) in terms of disallowance of deduction of Rs. 20,29,52,323/- allowable u/s. 10AA of the Act. It was submitted that the Ld.CIT(A), however, dismissed the assessee's appeal and our reference was drawn to the relevant findings of the ld CIT(A) which are contained in paras No. 5.11 & 5.12 of the impugned order, which read as under: "5.11 To conclude, it is clarified that the present appeal....

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....her submitted that the assessee has filed the return of income within the prescribed due date and has made requisite claim u/s. 10AA of the Act and has filed the necessary documentation/certification in support of thereof and, therefore, the assessee satisfies all the necessary conditions stipulated for claim of deduction u/s. 10AA of the Act and while processing the return of income, where the claim of deduction u/s. 10AA of the Act was allowed to the assessee in terms of intimation u/s 143(1) of the Act, there is no basis for CPC, while passing the rectification order u/s 154 to disallow the deduction claimed u/s. 10AA of the Act and the same will clearly amount to change of opinion and that too without providing necessary opportunity to ....

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....hereafter, the intimation u/s 143(1) was issued on 28-03-2021 by AO/CPC wherein again, there was no adjustment done in respect of deduction so claimed by the assessee u/s 10AA. Infact, the intimation records in affirmative allowing the claim of deduction u/s 10AA so made by the assessee amounting to Rs. 20,29,52,323/-. Thereafter, the assessee moved a rectification application u/s 154 against the said intimation in respect of certain other adjustments and which was disposed-off by AO/CPC in terms of order passed u/s 154 r.w.s. 143(1) where the claim of deduction u/s 10AA has been denied for the first time and that too, without specifying any reasons. It is also a matter of record that no show-cause or notice has been issued by AO/CPC before....