DCIT Vs Denso Haryana Pvt. Ltd. (ITAT Delhi)
Section 143(1) Intimation Merges With Scrutiny Assessment, Making Revenue Appeal Infructuous; Intimation Under Section 143(1) Has No Independent Locus After Section 143(3) Assessment; Revenue Challenge to GST and Section 41(1) Adjustments Rejected as Infructuous by ITAT; Scrutiny Assessment Overrides Earlier CPC Intimation Under Section 143(1); Appeal Against Section 143(1) Intimation Becomes Infructuous After Final Assessment Order; ITAT Applies Doctrine of Merger to Hold Section 143(1) Appeal Non-Maintainable.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, dismissed the Revenue’s appeal as infructuous after holding that an intimation issued under Section 143(1)(a) of the Income Tax Act merges with the final scrutiny assessment order passed under Section 143(3).
The assessee, engaged in manufacturing automotive components, filed its return for Assessment Year 2021-22 declaring a loss of Rs.98.58 crore. The return was processed by the Central Processing Centre (CPC) under Section 143(1) on 22.09.2022, resulting in determination of total income at Rs.560.93 crore. The case was later selected for scrutiny through CASS on transfer pricing risk parameters relating to international transactions and low profit before interest and taxes.
During scrutiny proceedings conducted under Section 144B, the matter was referred to the Transfer Pricing Officer (TPO), who proposed adjustments under Section 92CA(3). The Assessing Officer (AO) also proposed additions relating to club entrance fees, subscriptions, and stock differences. Simultaneously, the assessee filed a rectification application under Section 154 seeking correction of the intimation issued under Section 143(1), as the rectification request could not be filed through the e-filing portal.
