📢 ITAT Chennai Deletes Entire ₹5.73 Cr 143(1) Demand
Published
143(1) Show-Cause Issued: ITAT Quashes ₹5.73 Cr Demand for TDS Mismatch
The ITAT has held that a 143(1)(a) adjustment cannot be made without issuing a mandatory show-cause/intimation, especially in cases of TDS–income mismatch. A prior 139(9) defect notice cannot substitute the statutory requirement of a 143(1) intimation.
Since no notice was issued before denying TDS credit of ₹5.05 crore, the Tribunal ruled the adjustment invalid and ordered complete deletion of the ₹5.73 crore demand.
Key Takeaway: Due process under Section 143(1) is mandatory—no adjustment without prior intimation.
