When a scrutiny assessment under section 143(3) is performed, it merges the previous intimation under section 143(1), and the Assessing Officer must pass a reasoned order addressing the assessee's submissions and pending rectification requests, making such orders appealable rather than infructuous.

O R D E R

PER NIKHIL CHOUDHARY, A.M.:

This is an appeal filed by the assessee against the orders of the ld. CIT(A), NFAC under section 250 of the Income Tax Act, 1961 dated 9.01.2024 dismissing the appeals of the assessee, against the order of the Assessing Officeer passed under section 143(3) for the A.Y. 2018-19 on 6.02.2021. The grounds of appeal are as under:-

1. On the facts and in the circumstances of the case and in law, the learned Assessing Officer ("AO"), National e-assessment center, Delhi has grossly erred in assessing total income of the appellant based on the erroneously processed return by the CPC-Bangalore as per intimation generated u/s 143(1)(a) without giving effect to the rectification application u/s 154 filed by the Appellant company against the intimation passed u/s 143(1)(a). Hon'ble Commissioner of Income tax (Appeals), National Faceless Appeal Centre ("CIT(A)") has erred in stating that the additions made u/s 143(1)(a) are in order without considering the fact that the rectification application has been filed u/s 154 before the learned AO against the intimation generated u/s 143(1)(a) and the same has not been considered by learned AO while making assessment u/s 143(3) The learned AO be directed to assess the total income of the appellant u/s 143(3) based on the return filed u/s 139(1), the rectification application u/s 154 filed by the Appellant company against the intimation passed u/s 143(1)(a) and information filed during the assessment proceedings.

2. On the facts and in the circumstances of the case and in law, Hon'ble CIT(A) has erred in holding that since none of the ground of appeal in the appeal before him is emanating from the order u/s 143(3) against which the appeal has been filed, all the grounds raised by the Appellant company are dismissed as infructuous without considering the fact that u/s 143(3) the learned AO should have made an assessment of the total income after hearing such evidences as the appellant produced and such other evidences as he may require and after taking into account all relevant material which he has gathered and determined the tax payable or refund due on the basis of such assessment. Hon'ble CIT(A) be directed to consider all the grounds raised by the appellant in the appeal since all of them are emanating from the order u/s 143(3) against which the appeal was filed. The learned AO be directed that assessment of total income u/s 143(3) be made after considering the return filed u/s 139(1), the application u/s 154 filed against intimation generated u/s 143(1)(a) and the relevant information/evidence provided by the appellant.

3. On the facts and in the circumstances of the case and in law, the learned AO has grossly erred in accepting the return erroneously processed by CPC u/s 143(1)(a) without giving effect to rectification application filed by the Appellant company. Hon'ble CIT(A) has erred in upholding the order of the learned AO. The learned AO be directed to consider the rectification application filed by the Appellant company u/s 154 for rectification of intimation passed u/s 143(1)(a) and relevant information provided by the Appellant company in assessment of the total income u/s 143(3).

4. On the facts and in the circumstances of the case and in law, the learned AO has erred in assessing Rs.6,72,97,250 as income under the head 'Profits & Gains from Business & Profession' based on the erroneously processed return by the CPC-Bangalore u/s 143(1)(a) without giving effect to the rectification application u/s 154 filed by the Appellant company against the intimation passed u/s 143(1)(a), without considering relevant information by the appellant during the assessment proceedings. Hon'ble CIT(A) has erred in upholding the order of the learned AO. The learned AO be directed to delete Rs. 6,72,97,250 assessed as income under the head "Profit and Gains