Appeal maintainability turns on section 143(1) intimation, not section 143(3) order, where rectification remains pending.

An appeal against a section 143(3) assessment order is not maintainable where the real grievance relates to the section 143(1) intimation, which is separately appealable under section 246A. If the assessment order merely accepts the reduced loss already reflected in the intimation and makes no addition, the controversy does not arise from that assessment order itself. Where a rectification application under section 154 remains pending, the proper course is to pursue that remedy first. The dismissal of the appeal was upheld, and the Assessing Officer was directed to decide the pending rectification application in accordance with law after giving an opportunity of hearing.

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Issues: Maintainability of the appeal against the assessment order under section 143(3) of the Income-tax Act, 1961 when the grievance arose from the intimation under section 143(1) and a rectification application under section 154 was pending.

Analysis: The intimation under section 143(1) and the assessment order under section 143(3) are both appealable under section 246A of the Income-tax Act, 1961. The grievance of the assessee was essentially against the intimation under section 143(1), against which a statutory appellate remedy was available. The assessment order under section 143(3) did not make any addition and merely accepted the reduced loss already determined in the intimation. Since the rectification application under section 154 had not yet been disposed of, the controversy did not arise from the assessment order itself.

Conclusion: The appeal against the assessment order under section 143(3) was not maintainable on the asserted grievance, and the dismissal of the appeal was upheld. The Assessing Officer was directed to decide the pending rectification application in accordance with law after granting an opportunity of hearing.

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