2023 (3) TMI 480

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing grounds of appeal: 1. Ld. CIT(A) erred in confirming the disallowance made by CPC / AO at the time of processing the return u/s.143(1), for the deduction claimed u/s.80P. 2.1. Ld. CIT(A) erred in confirming the disallowance made by CPC / AO in denying the deduction claimed u/s.80P since 80P is not included in the list of sections mentioned in sec.143 (1)(a)(v) for which adjustments can be done at the time of processing the return u/s.143(1) if the return is filed beyond the due date u/s.139(1). 2.2 Ld. CIT(A) and CPC erred in applying the general provision of sec. 143(l)(a)(ii) when there is a specific provision of 143(1)(a)(v) to deal with the particular and present situation. Amendment in 2021 in 143(1)(a)(v....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income Tax Act, 1961 (in short "the Act"). The return of income filed by the assessee has been processed u/s.143(1) of the Act, and determined total income of Rs.7,68,14,720/- after rejecting deduction claimed under Chapter-VIA of the Act. The assessee carried the matter in appeal before the First Appellate Authority, but could not succeed. The Ld.CIT(A) for the reasons stated in their appellate order dated 21.03.2022, dismissed the appeal filed by the assessee. 4. The Ld.AR for the assessee submitted that the Ld.CIT(A) erred in not appreciating the fact that when the case has been taken up for scrutiny, and the order has been passed u/s.143(3) of the Act, the assessment order passed u/s.143(1) of the Act, merged with the assessment orde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....21. In assessment proceedings u/s.143(1) of the Act, the AO rejected deduction claimed u/s.80P of the Act. In assessment proceedings u/s.143(3) of the Act, the AO has allowed deduction claimed u/s.80P of the Act. From the above, it is very clear that subject matter of assessment in both provisions under the Act, is deduction claimed u/s.80P of the Act. In our considered view, once proceedings have been initiated u/s.143(3) of the Act, and assessment has been completed thereunder, then earlier assessment order passed u/s.143(1)(a) of the Act, is no long operative for that assessment year, because, the first assessment 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 ....