For an invalid return, a section 143(1) intimation cannot be sent

Fact and issue of the case

This is an appeal filed by the assessee against the order of the ld CIT(A), National Faceless Appeal Centre (NFAC), Delhi, passed in DIN & Order No.ITBA/NFAC/S/250/2022-23/1043436040(1), dated 14.06.2022, for the assessment year 2014-2015.

It was submitted by the ld. AR that the assessee had filed its return of income on 14.01.2015. It was the submission that the assessee had been served with a communication dated 21.08.2015 intimating that the return filed by it was a defective return and if the defect was not rectified the return would be treated as invalid. Ld. AR has placed before us the copy of the communication dated 21.08.2015

It was submitted by the ld. AR that the assessee had not complied with the notice issued u/s.139(9) of the Act on 21.08.2015. It was the submission that subsequently the assessee was served with intimation u/s.143(1) of the Act on 14.03.2016, wherein some adjustments have been made. It was the submission that as the return filed by the assessee was defective u/s.139(9) of the Act and as the assessee had not made the correction as called for to treat the return as a valid return, in view of the provisions of Section 139(9) of the Act, the return filed by the assessee is liable to be treated as invalid return and intimation u/s.143(1) of the Act cannot be issued on such a return. It was the submission that the intimation issued u/s.143(1) of the Act on 14.03.2016 is required to be cancelled. It was the submission that without appreciating the submission of the assessee, the ld. CIT(A) has confirmed the intimation.

In reply, ld.Sr. DR vehemently supported the order of the ld. CIT(A). It was the submission that as the intimation has been issued u/s.143(1) of the Act, the assessee should be asked to pay the demand as raised. It was the submission that the appeal filed by the assessee is a frivolous appeal.

Observation by the tribunal

The tribunal has considered the rival submissions. A perusal of the communication dated 21.08.2015 issued to the assessee clearly shows that the CPC has issued the notice u/s.139(9) of the Act intimating defects in the return. In the notice, it has been categorically mentioned that if the defects were not removed, the return filed by the assessee would be treated as invalid return. Admittedly, the assessee has not rectified the defects. Consequently, the return filed by the assessee is liable to be treated as invalid return. Once the return filed by the assessee is treated as invalid return, intimation u/s.143(1) of the Act issued on the said return on 14.03.2016, admittedly, is invalid and consequently the same stands quashed.

In the result, appeal of the assessee is allowed.

Order dictated and pronounced in the open court on 14/12/2022.

Read the full order from here

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