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2024 (3) TMI 707 - ITAT BANGALOREMaintainability of appeal against Scrutiny assessment u/s 143(3) or intimation u/s 143(1) - Cause of action for appeal arising from assessment or intimation - Application for rectification of intimation pending - AR contended that the income was assessed at 10% as per the intimation u/s 143(1) of the Act whereas in the assessment completed u/s 143(3) of the Act, it was treated as business profit and taxed at 30% as against 10% at special rate u/s 115BBDA HELD THAT:- On perusal of the impugned Assessment Order passed u/s 143(3) it is clear that AO has assessed the total income solely relying on the adjustment made by the AO/CPC in the intimation made u/s 143(1). In the impugned Assessment Order passed u/s 143(3) there is no independent discussion as regards the income assessed at Rs. 23,29,62,420/-. Section 246A specifically provides for an appeal as against intimation issued under section 143(1) of the Act. In the instant case, total income has been assessed as per the intimation passed u/s 143(1). Therefore, the cause of action for the assessee arises from the intimation issued u/s 143(1) and appeal ought to have been filed as against the same. The assessment completed u/s 143(3) of the Act merely adopts the assessed figures in the intimation order passed under section 143(3) of the Act. Therefore, no cause of action arises from the order passed u/s 143(3) of the Act. Section 143(4) of the Act only mentions that on completion of regular assessment under section 143(3) or 144 of the Act, the tax paid by assessee under section 143(1) of the Act shall be deemed to have been paid toward such regular assessment. That by itself does not mean there is merger of intimation under section 143(1) with that of regular assessment under section 143(3) / 144 (unless issue has been discussed and adjudicated in regular assessment under section 143(3) / 144 of the Act). Assessee, against the intimation under section 143(1) of the Act, has filed a rectification application under section 154 of the Act and the same is pending disposal. CIT(A) in the impugned order has directed the AO to dispose off the said rectification application - Moreover, if assessee is advised to file an appeal as against the intimation u/s 143(1) a liberal approach may be taken for condonation of delay since assessee’s application for rectification of the intimation under section 143(1) of the Act has been filed within time and same is pending disposal. With the above said observation, the grounds of the assessee are rejected.
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