JUDGMENT

B. N. MAHAPATRA, J. — This appeal is directed against the Order dated 25.11.2002 passed by the Income Tax Appellate Tribu¬nal, Cuttack (hereinafter referred to as ‘ITAT)) in ITA No.401(CTK)/98 and C.O. No.109 (CTK)/1998. This Court has admit¬ted the appeal on the following substantial questions of law:

(i) Whether on the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal is right in holding that the cross objection filed by the Appellant had become aca¬demic and infructuous ?

(ii) Whether after issuance of notice under Section 143(2) of the Act, it is not open to the assessing officer to make adjustments or pass an order under Section 143(1) of the Act, and he has to make the assessment under Section 143(3) of the Act ?

2. The relevant facts, in nutshell, which give rise to the present appeal are as follows :-

The appellant is a Public Limited Company engaged in busi¬ness of manufacture and sale of sponge iron. It was incorporated under the Companies Act, 1956 on 31.07.2005 and assessed to income tax since the assessment year 1984-85. The appellant filed return under Section 139 of the Income Tax Act, 1961 (hereinafter referred to as ‘the A