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

Vs

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:

1692324745026