A show-cause notice is mandatory before issuing an intimation under Section 143(1), and failure to do so invalidates the tax adjustments.

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ)

I.T.A. No. 126/KOL/2025 Assessment Year: 2021-2022 M/s. Kriti Securities Consultants Pvt. Ltd,…Appellant

15, India Exchange Place, 1st Floor, Kolkata-700001 [PAN:ABJFM7166M]

-Vs.-

Income Tax Officer,…………………..…………..Respondent Ward-30(1), Kolkata, Aayakar Bhawan, Dakshin, 2, Gariahat Road (South), Kolkata-700031 Appearances by:

Shri Sunil Surana, A.R., appeared on behalf of the assessee Shri Somnath Das Biswas, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: May 01, 2025 Date of pronouncing the order: July 28, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of Id. Additional/ Joint Commissioner of Income Tax (Appeals)-3, Chennai dated 06.12.2024 passed for Assessment Year 2021-2022.

2. The brief facts of the case are that the assessee company filed its return of income u/s 139(1) electronically for the assessment year 2021-22 on 15.03.2022 declaring a total income of Rs. NIL. The assessee is a private limited company incorporated on 20.05.1992. Copy of MCA master data downloaded online evidencing the proof of company. The assessee company was allotted PAN No. as ABJFM7166M, fourth character denoting the status of the PAN holder as of Firm/Limited Liability Partnership. In spite of the fact that the status of the PAN is showing as of firm, each and every preceding and succeeding year's Income Tax Return including the disputed year's return was filed in Form ITR- 6 which is applicable to that of a company. Copy of ITR Acknowledgement of every year evidencing the return filed in Form ITR-6 regardless of the wrong status reflecting in the portal. Thereafter the assessee filed a revised return u/s 139(5) on 29.03.2022 declaring a total income of Rs. 17,07,028/- and continued to opt for taxation under section 115BAA i.e., as per the new tax regime in the Income Tax Return. Assessee has already opted tax regime u/s 115BAA during the preceding assessment year 2020-21, for which Form 10-IC as required under the law (whose delay was condoned by the CBDT) was also duly filed before the AO through e-mail along with the explanation citing the reason of inability to e- file form 10IC during the AY 2020-21. However, while filing form 10IC, the status of the assessee company was wrongly displaying as firm in the Income Tax Portal and is still showing as the same. Although the assessee has already made an application and submitted the PAN correction form vide letter dated 15.0.3.2022 along with a reminder dated 26.04.2022. The status of assessee’s application is still showing as under process at NSDL screenshot of NSDL portal. Unable to way out a resolution the assessee filed the Form 1OIC accompanying with the genuine reasons of inability to e-file the aforesaid form in brief through its registered mail before its jurisdictional AO i.e. Income Tax Officer, Ward-30(5), Kolkata on 30.06.2022. However, while processing the return u/s 143(1) for current A.Y 2021-22, the Ld. CPC taxed the income as per the old tax regime which resulted into a huge demand for Rs.20,98,030/- only on the ground that the required form 10IC was not filed online before filing of return when the same was already filed. Being aggrieved, the assessee filed the instant appeal before the ld. CIT(Appeals) against the older u/s 143(1)

passed by the ld. Assessing Officer.

3. The ld. Addl./JCIT(Appeals) observed that the assessee company while filing the return of income for assessment year 2021-22 continued to opt for taxation u/s 115BAA, i.e. as per new tax regime which was originally opted in assessment yea