ITAT Quashes Time-Barred ITR Intimation Under Section 143(1) Issued by CPC

The Income Tax Appellate Tribunal (ITAT), Delhi, in one of its orders, ruled in favour of an assessee regarding the validity of an intimation sent by the Centralised Processing Centre (CPC) for the Assessment year 2021-22.

The assessee, BPTP Limited, filed an appeal against the CIT(A) order dated 16.08.2024 for AY 2021-22 before the ITAT, Delhi. The assesse submitted that the intimation passed under section 143(1) dated 14.12.2022 was time-barred. The assesse cited the fifth proviso to section 143(1), which requires the intimation to be sent within 9 months after the end of the financial year. In the assessee’s case, this deadline would be 30th December 2022. But the CPC sent it on 27th February 2023, which was too late. The assessee company also argued that the CPC passed the intimation without giving any prior intimation for making the adjustments.

The ITAT also agreed with the assessee that the intimation under section 143(1) was issued beyond the 9-month limit. Therefore, the Tribunal deleted the adjustment made in the intimation passed under section 143(1) of the Act. However, the issue of prior notice for adjustments was not decided and was left open.