AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 179
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....he following grounds of appeal along with additional grounds of appeal both legal as well as on the merits of the case: "(1) Without prejudice to the grounds hereunder, the learned CIT(A) erred in holding that the appeal arising out of section 143(1) is independent from subsequent assessment u/s. 143(3) of the Act. (2) On the facts and circumstances and in law, the learned CIT(A) ought to have appreciated, legally, that the subsequent scrutiny assessment order under 143(3) is enforceable/binding under the law as it is finality of the assessment, so effectively the intimation u/s. 143(1) is not finality of assessment. (3) The learned CIT(A) In other words the learned CIT(A) ought to have appreciated that subsequent....
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....allowing of Rs. 3,07,41,124/- under the provisions of section 36(1)(va) of the Act merely relying on the Tax Audit Report Clouse 20(b) which mistakenly reported the contribution towards PF & ESIC as "Sum received from employees" whereas the alleged disallowed amount was actually comprised of Employer's Contribution and Employees' contribution towards PF & ESIC. (2) Your Appellant humbly states that, as per law, the Employer's contribution is legally disallowable if not paid on or before the due date as per the provisions of section 43B and Employees contribution is legally disallowable if not paid on or before the due date as per the provisions of section 36(1)(va) of the Act. (3) On the facts and circumstances....
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....efore us challenging the order of the Ld. CIT(A) on the abovementioned grounds. 6. The Learned Authorized Representative ("Ld. AR" for short) for the assessee commenced his arguments on ground No.1, 2, 3 & 4 stating that there was a scrutiny assessment in the assessee 's case u/s 143(3) of the Act where the Learned Assessing Officer ("Ld. AO" for short) did not make any addition/disallowance and hence the order u/s 143(1) of the Act ceases to exist subsequent to the scrutiny assessment passed u/s 143(3) of the Act. The Ld. AR contended that section 143(1) order would merge automatically with the section 143(3) order though the Ld. AO has not commenced the section 143(3) proceeding on the basis of the income determined by the CPC in the s....
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....ed the materials available on record. The issue with regard to whether or not section 143(1) order would merge with section 143(3) automatically as alleged by the Ld. AR. It is observed that the provision of section 143(1) of the Act states that where a return has been made u/s 139 of the Act or in response to notice u/s 142(1) of the Act the said return shall be processed determining total income or loss by making adjustment on any arithmetical error, an incorrect claim if any, any inconsistency in the return, disallowance of loss, expenditure, deduction etc. which are only prima-facie adjustments made on the basis of the return of income filed by the assessee. The scrutiny assessment u/s 143(3) of the Act on the other hand is subject to t....
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....ereby deem it fit to dismiss grounds No.1 to 4 raised by the assessee. 9. Grounds No.5 & 6, being general in nature, require no adjudication and are also hereby dismissed. 10. The second issue pertains to the additional grounds raised by the assessee where it is contended that there was a mistake crept in the tax audit report at clause 20(b) of the Act where the disallowance made to the contribution towards PF & ESIC is not merely the employees' contribution but it also comprises the employer's contribution which is governed by the provisions of section 43B of the Act. We are conscious of the fact that the Hon'ble Apex Court in the case of Checkmate Services Pvt. Ltd. (supra) is to the extent of delayed payment of employees' contribut....