2022 (11) TMI 1206 - AT - Income Tax

Assessment order passed u/s. 143(3) - Merging of order - Disallowance made in the assessment completed u/s. 143(3) of the Act and is pending for disposal - Assessee is in appeal before the Ld. CIT(A) against the disallowance made in the assessment completed u/s. 143(3) of the Act and is pending for disposal - HELD THAT - From the perusal of the assessment order passed u/s. 143(3) of the Act, we note that Ld. AO has proceeded to compute the assessed income by making an addition to the returned income of the assessee and not the income processed u/s. 143(1) - As noted that in the said order u/s. 143(3) of the Act, there is no addition made in respect of dividend income received from investment in units of mutual funds u/s. 115BBDA of the Act. We note that since the assessment order u/s. 143(3) of the Act has already been passed in the present case before us, the intimation u/s. 143(1) of the Act against which the assessee is in appeal before us got merged with the aforesaid assessment order. Once the present intimation u/s. 143(1) of the Act having got merged in the assessment order passed u/s. 143(3) of the Act, the cause of action for the present appeal itself has vanquished, rendering the instant appeal as infructuous. We have not expressed any views in respect of the matter raised in the assessment order passed u/s. 143(3) of the Act for which appeal by the assessee before the Ld. CIT(A) is pending for adjudication. That is a separate proceeding and the outcome of the same may be take n up in separate appellate proceedings under the relevant provisions of the Act at the discretion of the concerning parties. Considering the above observation and finding, we dismiss the appeal of the assessee as infructuous. Appeal of the assessee is dismissed.

Summary

Issues:
1. Time-barred appeal by the assessee.
2. Condonation of delay due to the Covid-19 pandemic.
3. Grounds raised by the assessee challenging the computation of total income, lack of opportunity to be heard, tax on exempt income, TDS credit, and levy of interest.
4. Disallowance made in the assessment order under Section 143(3) of the Income-tax Act, 1961.
5. Merging of intimation under Section 143(1) with the assessment order under Section 143(3) leading to the dismissal of the appeal as infructuous.

Analysis:

1. The appeal filed by the assessee was time-barred by 99 days, but a condonation petition was submitted. The delay was during the Covid-19 pandemic, which the Supreme Court had excluded for the purpose of limitation. Consequently, the delay was condoned, and the tribunal proceeded with the adjudication.

2. The grounds raised by the assessee included challenges to the computation of total income, lack of opportunity to be heard, tax on exempt income, TDS credit, and levy of interest. The appellant contested the additions made in the intimation under Section 143(1) of the Act, which were not addressed in the assessment order under Section 143(3) of the Act.

3. The assessment order under Section 143(3) of the Act disallowed an exemption claim on leave encashment. The appeal against this disallowance was pending before the Ld. CIT(A) and was not part of the present appeal. The tribunal noted that the intimation under Section 143(1) merged with the assessment order under Section 143(3), rendering the current appeal infructuous. The tribunal clarified that it did not express any views on the matters raised in the pending appeal before the Ld. CIT(A).

4. Since the intimation under Section 143(1) merged with the assessment order under Section 143(3), the cause of action for the current appeal ceased to exist, leading to the dismissal of the appeal as infructuous. The tribunal emphasized that the issues in the pending appeal before the Ld. CIT(A) would be addressed separately in subsequent appellate proceedings under the relevant provisions of the Act.

5. In conclusion, the tribunal dismissed the appeal of the assessee as infructuous, with the order pronounced in open court on 24th November 2022.