ASNP & Co. Vs ITO (ITAT Bangalore)
Summary: Facts. The assessee filed its return of income on 10.01.2021. The return was selected for scrutiny through CASS on the issue of large relief claimed under sections 90/91. Notice under sections 143(2) was issued on 29.06.2021, thereby commencing scrutiny proceedings. However, the very same return was subsequently processed by CPC under section 143(1), and an intimation was issued on 25.12.2021. The assessment under section 143(3) read with section 144B was subsequently completed without making any separate addition on the issue for which scrutiny had been initiated. :contentReference[oaicite:1]{index=1}
Revenue / CIT(A) Finding. The Revenue contended that sections 143(1) and 143(2) operate independently and that there was no statutory requirement that processing under section 143(1) must precede issuance of notice under section 143(2). It was also argued that the limitation for issuing notice under section 143(2) is linked to the end of the financial year in which the return is furnished and not to the date of processing under section 143(1).
The Revenue further contended that no prejudice had been caused to the assessee because the assessee had participated in the scrutiny proceedings. The assessee, however, challenged the validity of the subsequent section 143(1) intimation and the adjustments made therein.
