VARSANT HOME APPLIANCES PRIVATE LIMITED,HYDERABAD vs. INCOME TAX OFFICER, WARD-17(3), HYDERABAD

It emerges at the outset that we are dealing with Section 154 proceedings only than an assessment framed u/s.143(3) of the Act. The Assessing Officer’s order u/s.154 dt.16-12- 2015 have adopted gross figures at Rs.7,76,53,800/- as against Rs.77,65,38,002/- shown in the Profit and Loss account as accepted in Section 143(3) assessment dt.31-03- 2015. He therefore adopted the former figure only for the purpose of estimating assessee’s income @5% of the gross receipts. We next notice that assessee’s appeal u/s.143(3) of the Act is already pending before the CIT(A). That being the case, we are of the view that the instant Section 154 rectification appeal must also follow the suit as of now so as to avoid mutual contradictions. We thus restore the assessee’s instant lis back to the CIT(A) for his appropriate adjudication as per law along with that that involving 143(3) proceedings for the sake of consistency and brevity. All other pleadings on merits are rendered infructuous.

This assessee’s appeal is treated as allowed for statistical purposes in above terms.