Intimation under Section 143(1) issued without providing an opportunity to the assessee, violates the principles of natural justice and hence unsustainable: ITAT Banglore.
Bangalore Tribunal in the case of Microland Limited (ITA No 1154/Bang/2024) has held that Intimation under Section 143(1) issued without providing an opportunity to the assessee, violates the principles of natural justice and hence unsustainable.
Let us have a Short Overview of the case:
In this case, the return was processed under Section 143(1) of the Act, making adjustments for ICDS and denying the deduction under Section 80JJAA.
On appeal, the ADDL/JCIT(A)-2, Chennai allowed the appeal, observing that the ICDS adjustments were made under ICDS-I and ICDS-VI, relating to accounting policies and changes in exchange rates, which were taken into consideration by the Assessee.
Regarding the denial of deduction under Section 80JJAA, the ADDL/JCIT(A)-2 observed that the assessee had opted for the concessional tax regime under Section 115BAA and had filed the original return before the extended due date. The denial of the deduction without any reasoning was deemed invalid.
Revenue’s Appeal and Assessee’s Cross Objection:
The Revenue appealed against the order, arguing that the ADDL/JCIT(A) allowed the appeal without discussing the merits based on documentary evidence.
The assessee filed a cross objection, mainly contending that the intimation under Section 143(1) was in violation of the provisions of section 143(1)(a) and principles of natural justice.
Tribunal’s ruling:
The Tribunal noted that the processing of returns under section 143(1) involves adjustments as mentioned in clauses (i) to (vi) of Section 143(1)(a) and does not involve examination of documentary evidence.
The Tribunal principally agreed with the ADDL/JCIT(A) that the adjustments on account of ICDS And 80JJAA are unwarranted.
The Tribunal found that the intimation under Section 143(1) was issued without providing an opportunity to the assessee, violating the provisions of 143(1)(a), thereby violating the principles of natural justice. Hence, the adjustments done by CPC are unsustainable.
The Copy Of the order is as under:
 issued without providing an opportunity to the assessee, violates the principles of natural justice and hence unsustainable: ITAT Banglore.){kind=link}
 issued without providing an opportunity to the assessee, violates the principles of natural justice and hence unsustainable: ITAT Banglore.&description=&image=https://thetaxtalk.com/wp-content/uploads/2025/01/Slide4-8.jpg){kind=link}