Intimation issued u/s 143(1) after issue of notice u/s 143(2) legally invalid. Intimation u/s 143(1)(a) can not be issued after notice for regular assessment has been issued under section 143(2)
ITAT in a recent judgment has confirmed that Intimation issued u/s 143(1) after issue of notice u/s 143(2) legally invalid
ABCAUS Case Law Citation:
ABCAUS 3772 (2023) (06) ITAT
In the instant case, the assessee had challenged the order passed by the CIT(A) in confirming the adjustment made by the intimation issued under section 143(1)(a) after the notice for regular assessment has been issued under Section 143(2) of the Income Tax Act, 1961 (the Act).
Undisputed fact was that notice u/s 143(2) was issued one month prior to the intimation u/s 143(1) was issued to the assessee.
The Tribunal observed that the Hon’ble Supreme Court had occasion to examine the question as to whether it is open to the Revenue to issue intimation under section 143(1)(a) of the Act after a notice for regular assessment as been issued under section 143(2) of the Act?
The Hon’ble Supreme Court was listening to the challenge made by the Revenue to the order of the Hon’ble High Court in holding that no substantial question of law arise for consideration.
The case of the respondents was that there is a limitation on the jurisdiction of the Assessing Officer to commence proceedings under section 143(1)(a) of the Act.
The Tribunal noted that the Hon’ble Supreme Court held that there is no dispute that Section 143(1)(a) of the Act enacts a summary procedure for quick collection of tax and quick refunds. Under the scheme if there is a serious objection to any of the orders made by the Assessing Officer determining the income it is open to the assessee to ask for rectification under section 154. Apart therefrom, the provisions of section 143(1)(a)(i) indicates that the intimation sent under section 143(1)(a) shall be without prejudice to the provisions of sub section (2). The legislature, therefore intended that, where the summary procedure under Sub-section (1) has been adopted, there should be scope available for the Revenue, either suo moto or at the instance of the assessee to make a regular assessment under sun-section (2) of section 143. The converse is not available; a regular assessment proceedings have been commenced under section 143(2), there is no need for a summary proceeding under section 143(1)(a).
The Tribunal, placing reliance on the order of the Apex Court held that the action of the revenue cannot be supported and the intimation issued u/s 143(1) after the issue of notice u/s 143(2) was legally invalid.
Accordingly, the appeal was allowed.
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