Pawan Hans Limited Vs DCIT (ITAT Delhi)
143(1) Intimation Does Not Merge with 143(3) When AO Applies No Mind – Appeal Restored for Merits Adjudication-ITAT Delhi:
In this appeal, Assessee challenged the dismissal of its appeal by Addl./JCIT(A) on the ground that the intimation u/s 143(1) had merged with the regular assessment u/s 143(3), rendering the appeal infructuous.
Tribunal noted that in the assessment order u/s 143(3), AO merely lifted the final income figure of ₹139,05,73,030 as determined by CPC in the intimation u/s 143(1), without examining, discussing or adjudicating the adjustments made by CPC. Tribunal held that merger applies only when AO expressly adjudicates the same issues in the order u/s 143(3). Since no such adjudication occurred, the intimation u/s 143(1) continued to have a separate cause of action & a valid independent appeal lay against it.
Tribunal relied on Areca Trust (ITAT Bangalore), Sun Tex Business Solutions Pvt Ltd (ITAT Chennai), Ariba Technologies India Pvt Ltd (ITAT Bangalore), holding that where AO simply carries forward CPC-adjusted income into the scrutiny assessment without independent application of mind, the 143(1) adjustments do not merge into the 143(3) order. CIT(A)’s dismissal was therefore erroneous. Tribunal set aside the order & restored the matter to CIT(A) to decide all issues on merits after providing adequate opportunity. Appeal was allowed for statistical purposes.
