ORIENT CRAFT LIMITED,GURGAON vs. DCIT CENTRAL CIRCLE 2, GURGAON

ITA 1097/DEL/2023Status: DisposedITAT Delhi31 October 2023AY 2017-18Bench: SH. M. BALAGANESH, ACCOUNTANT MEMBER AND SH.ANUBHAV SHARMA (Judicial Member)9 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO correctly exercised powers under section 154 as the intimation under section 143(1) was not merged with the assessment order under section 143(3) when the issues were different. The withdrawal of the appeal against the 143(1) order did not preclude the rectification.

What were the facts?

The assessee's return for AY 2017-18 was initially processed under section 143(1) with an addition for delayed PF/ESI deposit and house property income. The assessee withdrew an appeal against this order after a scrutiny assessment under section 143(3) was completed. Subsequently, the AO rectified the 143(3) order under section 154 to include the additions from the 143(1) intimation, stating they were missed.

What were the issues?

Whether additions made in a section 143(1) intimation can be rectified into a section 143(3) assessment order under section 154, and whether the doctrine of merger applies in this scenario.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(3),Section 154,Section 36(1)(va)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’ : NEW DELHI

Before: SH. M. BALAGANESH & SH.ANUBHAV SHARMA

For Respondent: Shri Subhra Jyoti Chakraborty
Hearing: 11.10.2023Pronounced: 31.10.2023

Per Anubhav Sharma, JM :

The appeal is preferred by the Assessee against the order dated 27.12.2022 of Commissioner of Income Tax (Appeals)-3, Gurgaon (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal no. 11587/2021-22 arising out of an appeal before it against the order dated 31.03.2021 passed u/s 154 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the DCIT-CC-II, Gurgaon (hereinafter referred as the Ld. AO).

1097/Del/2023

2.

The facts in brief are that the assessee has filed return of Income for AY 2017-18 on 30.11.2017 declaring an income of Rs. 18,10,42,260/-from Business and Profession, House property and other Sources. Intimation/

The order continues below.

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