The assessee filed its return declaring nil income after claiming exemption of Rs. 32.34 crore under section 11(1)(d). The CPC, while processing the return under section143(1), declined the claim for exemption under section11(1)(d) on the ground that the assessee society was neither registered nor had applied for registration under section12A. The assessee contended that adjustments under section 143(1) were made without prior intimation as mandated under the proviso to section 143(1). On appeal, the ITAT held that CPC remained under a statutory obligation to notify assessee and call for its objections before carrying out an adjustment under section 143(1) to returned income. Accordingly, the matter is restored to CIT(A) to verify as to whether the CPC had complied with the statutory obligation as required under the proviso to section 143(1). [AY. 2019-20]