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TMI Blog2023 (10) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, such adjustment shall be made . Thus, Bench is of the view that scope of permissible adjustment u/s 143(1)(a) is thus much broader, and, as long as an adjustments fits the description u/s 143(1)(a)(i) to (v) read with Explanation to Section 143(1), such an adjustment, subject to compliance with first and second proviso to Second provisos to Section 143(1), is indeed permissible. It is however, important to take note of the fact that unlike the old scheme of prima facie adjustments u/s 143(1)(a), the scheme of present section 143(1) does not involve a unilateral exercise. The very fact that an opportunity of the assessee being provided with an intimation of 'such adjustments' [as proposed u/s143(1)], in writing or by electronic mode, and the response received from the assessee, if any to be considered before making any adjustment makes the process of making adjustments u/s 143(1), under the present legal position, an interactive and cerebral process. Thus, as per the considered view of the Bench when an assessee raises objections to proposed adjustments u/s 143(1), AO CPC has to dispose of such objections before proceeding further in the matter-one way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case and in law, the ld.CIT(A) has erred in confirming the action of the AO of treating stipend receipts as salary income of the assessee and thereby confirming the addition of said income amounted to Rs. 9,61,984/-. Action of ld. CIT(A) is illegal, unjust, arbitrary and against the facts of the case. Relief may please be granted by deleting the said addition of Rs. 9,61,984/-. 2. In the facts and circumstances of the case and in law, the ld.CIT(A) has erred in not specifically adjuring the ground of the assessee wherein he objected that mistake apparent on record was not rectified by the AO u/s 154. Action of ld. CIT(A) is illegal, unjust, arbitrary and against the facts of the case. Relief may please be granted by allowing the rectification of apparent mistake 2.1 Apropos Ground No. 2 of the assessee, the facts of the present case are that the assessee is a Doctor. For 3 years, the assessee did his internship with Medanta Hospital. Consequently, the assessee received the stipend for the same and the hospital deducted TDS on such payment. As per the case of the assessee, the payment of stipend is exempt as income and therefore, the assessee de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mode and, under the second proviso to section 143(1), the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made. The scope of permissible adjustments under section 143(1)(a) now is thus much broader, and, as long as an adjustment fits the description under section 143(1)(a) (i) to (v), read with Explanation to section 143(1), such an adjustment, subject to compliance with first and second proviso to section 143(1), is indeed permissible. It is, however, important to take note of the fact that unlike the old scheme of 'prima facie adjustments' under section 143(1)(a), the scheme of present section 143(1) does not involve a unilateral exercise. The very fact that an opportunity of the assessee being provided with an intimation of 'such adjustments' [as proposed under section 143(1)], in writing or by electronic mode, and the response received from the assessee, if any to be considered before making any adjustment makes the process of making adjustments under section 143(1), under the present legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated by the Assessing Officer CPC anyway, it is difficult to understand on what basis the first appellate authority sits in judgment over correctness or otherwise of such a rejection of submissions. Whether the statute specifically provides for it or not, in our considered view, the need for disposal of objections by way of a speaking order has to be read into it as the Assessing Officer CPC, while disposing of the objections raised by the assessee, is performing a quasi judicial function, and the soul of a quasi judicial decision making is in the reasoning for coming to the decision taken by the quasi judicial officer. While on this aspect of the matter, we may usefully refer to the observations made by the Hon'ble Supreme Court, in the case of Union Public Service Commission v. Bibhu Prasad Sarangi [2021] 4 SCC 516. While these observations are in the context of the judicial officers, these observations will be equally applicable to the decisions by the quasi judicial officers like us as indeed the Assessing Officer CPC. In the inimitable words of Hon ble Justice Chandrachud, Hon ble Supreme Court has made the following observations: Reasons constitute the soul of a jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 143(1)(a), the scheme of present section 143(1) does not involve a unilateral exercise. The very fact that an opportunity of the assessee being provided with an intimation of 'such adjustments' [as proposed under section 143(1)], in writing or by electronic mode, and the response received from the assessee, if any to be considered before making any adjustment makes the process of making adjustments under section 143(1), under the present legal position, an interactive and cerebral process. Thus, as per the considered view of the Bench when an assessee raises objections to proposed adjustments under section 143(1), the Assessing Officer CPC has to dispose of such objections before proceeding further in the matter-one way or the other, and such disposal of objections is a quasi judicial function. Clearly, the Assessing Officer CPC has the discretion to go ahead with the proposed adjustment or to drop the same. The call that the Assessing Officer CPC has to take on such objections has to be essentially a judicious call, appropriate to facts and circumstances and in accordance with the law, and the Assessing Officer CPC has to set out the reasons for the same. Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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