#Section 143(1) IT Act

The ITAT Kolkata has ruled that the Centralized Processing Centre cannot make tax adjustments under Section 143(1) without first issuing a show-cause notice to the assessee, violating the foundational principle of natural justice. This sets a critical precedent for all taxpayers whose returns are processed automatically, ensuring procedural fairness in AI-driven tax assessments.

The ITAT Kolkata has ruled that once a case is selected for scrutiny under Section 143(2), any intimation under Section 143(1) issued thereafter is legally void. This sets a critical precedent for taxpayers and CPCs, reinforcing that procedural sequencing is mandatory and that adjustments to exemptions like Section 10(23C)(VI) cannot be made through automated intimations after scrutiny is triggered.