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Issues:
1. Dispute regarding the levy of additional tax under section 143(1A) when the resultant income is a loss. 2. Validity of intimation issued under section 143(1)(a) after the notice under section 143(2) has been served. Analysis: Issue 1: The first issue in this case involves the dispute over the levy of additional tax under section 143(1A) when the resultant income is a loss. The Tribunal examined the applicability of the amended provision of law, which was made clear by the judgment of the Hon'ble Supreme Court in a similar case. The Tribunal held that the amended provision of section 143(1A) applies even when the resultant income remains a loss after prima facie adjustment. Referring to the Supreme Court's decision, the Tribunal found the levy of additional tax under section 143(1A) to be proper and declined to interfere with the CIT(A)'s order. Issue 2: The second issue revolves around the validity of the intimation issued under section 143(1)(a) after the notice under section 143(2) had been served. The Tribunal considered various judicial pronouncements and circulars to determine the legality of the intimation. Citing decisions by the Gujarat High Court and the Calcutta High Court, the Tribunal concluded that once a notice under section 143(2) is issued, no intimation under section 143(1)(a) can be sent. Relying on the Supreme Court's decision, the Tribunal found the intimation served on the assessee to be invalid due to the sequence of events. Consequently, the Tribunal held the prima facie adjustment and intimation to be not valid and ordered their quashing. In light of the decision on the second issue, the Tribunal deemed it unnecessary to discuss the merits of other grounds raised in the appeal. The Tribunal also noted that its decision on the first issue became irrelevant following the decision on the second issue. As a result, the appeal of the assessee was allowed based on the findings related to the second issue.
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