Whether CPC can propose adjustment in Intimation u/s 143(1)(a) and pass order u/s 154 without giving an opportunity of hearing as prescribed in Section 154(3)?
Here is an interesting case by Calcutta High court on the scope of section 143(1)(a) vis a vis rectification power under section 154.The case detail is as under:
Shree Durga Trading Co &Anr
Deputy Director of Income-tax CPC &Anr
[Calcutta High Court]
Let us have a short overview of the case:
The challenge in this case was adjustment which was proposed in the intimation u/s 143(1)(a) and when such adjustment was objected, an intimation with the adjustment was sent without disposing off the objections and when the said intimation was sought to be rectified u/s 154, CPC made further enhancement of huge amount and huge demand was made.
On these facts, the order u/s 154 was challenged on grounds of violation of natural justice and the court rightly set aside such order with a direction to pass fresh order within 6 weeks after giving opportunity of hearing.
In a writ petition, Natural justice violation is always a good ground of challenge.
The copy of the order is as under: