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TMI Blog2023 (3) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order passed u/s.143(1) of the Act, is merged with the proceedings initiated u/s.143(3) of the Act. Therefore, we are of the considered view that when the AO has allowed the claim of deduction u/s.80P of the Act, in assessment proceedings u/s.143(3) of the Act, then order passed u/s.143(1) of the Act, by rejecting deduction claimed u/s.80P of the Act, in assessment proceedings u/s.143(1) of the Act, cannot survive. Because, the moment proceedings u/s.143(3) of the Act, is initiated, the proceedings u/s.143(1) of the Act, merged with proceedings u/s.143(3) of the Act. Since, the AO has allowed the claim of the assessee u/s.80P of the Act, in proceedings u/s.143(3) of the Act, the additions made by the AO in assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of 143(1)(a)(v) to deal with the particular and present situation. Amendment in 2021 in 143(1)(a)(v) also confirms the appellant's. 2.3 Ld. CIT(A) erred in following the decision of a writ petition which can't set a precedence and judicial binding. 2.4 During the assessment the deduction u/s.80P was allowed and the Returned Income Nil was accepted as assessed income. Intimation u/s.143(1) gets merged with assessment order and only the assessment order will prevail. Hence disallowance has to be deleted. 2.5 Since the Return of Income was filed within the time allowed u/s.139(4) the appellant is eligible for deduction claimed u/s.80P. 3. Without prejudice to the above, the calculation of interest u/s.234A, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act, the assessment order passed u/s.143(1) of the Act, merged with the assessment order passed u/s.143(3) of the Act, and thus, when the AO has allowed deduction u/s.80P of the Act, in assessment proceedings u/s.143(3) of the Act, additions made u/s.143(1) of the Act, does not survive. He further submitted that the case has been selected for limited scrutiny to verify deductions from total income under Chapter-VIA of the Act, and the AO has completed assessment u/s.143(3) of the Act, on 29.03.2021, and allowed deduction claimed u/s.80P of the Act. Therefore, earlier assessment passed u/s.143(1) of the Act, cannot survive. 5. The Ld.DR, on the other hand, supporting the order of the Ld.CIT(A), submitted that in scrutiny assessment, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is merged with the proceedings initiated u/s.143(3) of the Act. Therefore, we are of the considered view that when the AO has allowed the claim of deduction u/s.80P of the Act, in assessment proceedings u/s.143(3) of the Act, then order passed u/s.143(1) of the Act, by rejecting deduction claimed u/s.80P of the Act, in assessment proceedings u/s.143(1) of the Act, cannot survive. Because, the moment proceedings u/s.143(3) of the Act, is initiated, the proceedings u/s.143(1) of the Act, merged with proceedings u/s.143(3) of the Act. Since, the AO has allowed the claim of the assessee u/s.80P of the Act, in proceedings u/s.143(3) of the Act, the additions made by the AO in assessment proceedings u/s.143(1) of the Act, by rejecting deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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