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TMI Blog2023 (8) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... est @ 16% is quite reasonable and hence, we reverse the finding of CIT(A) on this issue and allow the appeal of assessee. Maintainability of Appeal against an intimation/processing of return u/s. 143(1) - Counsel stated that the order of CPC processing the return u/s. 143(1) of the Act has merged into the order passed by AO u/s. 143(3) of the Act and hence, it can be challenged at this stage only - HELD THAT:- Appeal against an intimation u/s. 143(1) of the Act is provided and the second limb clearly provides that section 246A(1)(a) of the Act enables an assessee to prefer an appeal before Commissioner (Appeals) against intimation / processing done by CPC u/s 143(1) of the Act, where the assessee objects to making of an adjustment. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by invoking section 40A(2)(b) of the Act. For this, assessee has raised the following ground No.2 as an effective ground:- 2. The learned Commissioner of Income Tax (Appeals) erred in restricting the disallowance of the interest expenditure to Rs. 48,36,197/- u/s 40A(2)(b) of the Act by holding that the rate of interest at 14% would be reasonable considering the fact that State Bank of India s Benchmark Prime Lending Rate as on 01/04/2017 was 13.85% 3. The AO during the course of assessment proceedings noticed that the assessee has taken loan from others and related parties. The AO noted that the assessee has taken loan from IIFL Wealth Finance Ltd., @ 8.50% and from Aditya Birla Finance Ltd., @ 13.75%. The AO also noticed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d gone through the facts and circumstances of the case. The ld.counsel for the assessee Shri S. Anandan, first of all stated that the loans obtained by assessee from IIFL Wealth Finance Ltd., and Aditya Birla Finance Ltd., are secured loans and which are provided by these two concerns on the basis of providing security of equivalent amount of loan, whereas the loan obtained by assessee from sister concern or related parties Shriram Property Ltd., at 16% is unsecured loan. The ld.counsel stated that the secured loans for business is obtained are mortgage of certain assets and moreover beyond that, for regular business commitments and completion of projects, the assessee has to borrow amounts through unsecured loans for which no security is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Commissioner of Income Tax (Appeals) erred in dismissing the ground of appeal relating to error in computation of book profit u/s 115JB and additions made to the normal income in the intimation u/s 143(1) by holding that grounds relating to intimation u/s 143(1) can be addressed only by way of appeal preferred against the intimation u/s 143(1) and not in the appeal against the assessment order u/s 143(3). 3.1 The learned Commissioner of Income Tax (Appeals) failed to appreciate that the intimation u/s 143(1) being a summary assessment order ceased to be operative and gets merged into the order passed u/s 143(3). 9. Brief facts are that the relevant assessment year involved is AY 2018-10 and assessee filed its return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) against which the assessee filed the present appeal. Therefore, these grounds are dismissed as infructuous. Aggrieved, now assessee is in appeal before the Tribunal. 10. Before us, the assessee has raised the above mentioned two grounds on the issue of whether intimation issued u/s. 143(1) of the Act is appealable or not. 11. Now before us, the ld.counsel for the assessee took us through the assessment order computation part and stated that the AO has computed the income including the adjustment made u/s. 143(1) of the Act vide order dated 01.10.2019 and he referred to the following:- 5. After verification / examination of all the details called for and submitted, the income shown by the assessee is assessee and computed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because the processing of return and intimation u/s. 143(1) of the Act is not appealable. 12. On the other hand, the ld.Senior DR took us through the provisions of section 246A of the Act, wherein by virtue of provision of section 246A(1)(a) of the Act, appeal against an intimation u/s. 143(1) of the Act is clearly provided w.e.f. 01.06.1999 by Finance Act, 1999. 13. We have heard rival contentions and gone through facts and circumstances of the case. We have gone through the main provision of section 246A of the Act and particularly clause (a) which reads as under:- 246A. Appealable orders before Commissioner (Appeals). (1) Any assessee or any deductor or any collector aggrieved by any of the following orders (whether made before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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