Paliwal Diagnostics Pvt. Ltd Vs DCIT (ITAT Lucknow)
The assessee filed an appeal before the ITAT against the order dated 08.07.2025 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC). The primary grievance was against the dismissal of an additional ground relating to an adjustment of Rs. 9,14,620 made under Section 143(1) of the Income Tax Act, 1961.
The Assessing Officer had passed an assessment order dated 20.09.2022 under Sections 143(3) read with 144B of the Act. The assessee’s total income was assessed at Rs. 12,65,32,570 as against the returned income of Rs. 12,29,19,020.
In the first appellate proceedings, the CIT(A) partly allowed the appeal by deleting an addition of Rs. 26,98,930. However, the adjustment of Rs. 9,14,620 made under Section 143(1) remained undisturbed. Aggrieved by this aspect of the order, the assessee approached the Tribunal.
Before the Tribunal, the assessee submitted that it had never received the intimation issued under Section 143(1) reflecting the adjustment. The Tribunal noted that this contention had also been raised before the CIT(A). The Revenue failed to produce any evidence establishing that such intimation had actually been issued and served upon the assessee.
The Tribunal observed that non-service of the intimation under Section 143(1) constituted a sufficient explanation for the assessee not having filed an appeal against that intimation. The Tribunal further examined the assessment records and found that the computation of taxable income in the assessment order itself referred to both the returned income and the income determined under Section 143(1). This demonstrated that the adjustment under Section 143(1) formed part of the income ultimately assessed through the assessment order.
