Mall Hotel Limited Vs DCIT (ITAT Delhi)
143(3) Accepts Returned Income as modified by CPC u/s 143(1)—Appeal Against 143(3) Not Tenable
Delhi ITAT ‘E’ Bench in Mall Hotel Limited vs DCIT (ITA No.5064/Del/2025, AY 2018-19, order dated 24-12-2025) dismissed the assessee’s appeal as not maintainable, holding that when no addition is made in the assessment u/s 143(3), the assessee cannot be said to be “aggrieved” so as to maintain an appeal.
Assessee, engaged in hotel, cinema theatre and rental business, had filed ROI declaring income of ₹11.13 crore. The case was selected for complete scrutiny. After issuing notices u/s 143(2) and 142(1) and considering details filed by the assessee, the AO accepted the returned income as modified earlier by CPC u/s 143(1) and passed an order u/s 143(3) without making any fresh addition.
The assessee nevertheless filed an appeal before CIT(A) challenging disallowance of ₹17.60 lakh relating to delayed deposit of EPF/ESI u/s 36(1)(va), which in fact arose only from CPC processing u/s 143(1). CIT(A) dismissed the appeal, holding that there was no merger of the 143(1) intimation with the 143(3) assessment, and that the appeal was not maintainable since the assessment order itself made no addition.
Before ITAT, Revenue objected to maintainability, arguing that the assessee had accepted the 143(1) intimation and had no grievance against the 143(3) order. ITAT agreed with the Revenue, noting that:
