TaxTMI 
TaxTMI 
2026 (6) TMI 1505
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.... to enable the Hon'ble Tribunal to decide on the grounds raised by the appellant as per Law." (B) In this case, assessment order dated 20.09.2022 was passed by the Assessing Officer under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (the Act) wherein the assessee's total income was determined at Rs. 12,65,32,570/- as against the returned income of Rs. 12,29,19,020/-. The computation of total income is worked out in the assessment order is as under: SI No Description Amount (in INR) 1 Income as per Return of Income filed Rs. 12,29,19,020/- 2 Income as computed u/s 143(1)(a) Rs. 12,38,33,640/- 3 Variation in respect of depreciation claimed on goodwill Rs. 26,98,930/- 4 Total Income/Loss determined Rs. 12,65,32,570/- (C) The assessee's appeal against the assessment order was partly allowed by the Learned CIT(A) vide impugned order dated 08.07.2025. The Learned CIT(A) deleted the addition of Rs. 26,98,930/- as per aforesaid computation of taxable income referred to in foregoing paragraphs (B) of this order. However, the assessee's appeal against the adjustment of Rs. 9,14,620/- made by way of adjustment under ....
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....pendent section 191) The ITAT observed that no independent discussion was present in the assessment order regarding the income assessed. It cited section 246A of the Act, which specifically provides for an appeal against intimation under section 143(1). Therefore, the ITAT concluded that the cause of action for the appellant arose from the intimation issued under section 143(1) and that the appeal should have been filed against it. The ITAT addressed the concept of merger and clarified that mere completion of assessment under section 143(3) doesn't automatically merge the intimation under section 143(1) with the assessment order. The ITAT pointed out that the appellant had also filed a rectification application against the intimation under section 143(1), which was pending disposal. The CIT (Appeals) directed the AO to dispose of the rectification application. The ITAT rejected the grounds of the appellant and dismissed the appeal. It emphasized that the appeal should have been filed against the intimation under section 143(1) and that the assessment order merely adopted the figures from that intimation. The ITAT suggested a liberal approach for condo....
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....t any proper basis or justification. 4. The Appellant was never served with such intimation and remained unaware of the same: a. Until the receipt of the assessment order passed under section 143(3) of the Act; and b. Even as on date, no copy of such intimation has been received by the Appellant. 5. The addition arose solely due to such incorrect adoption of income. 6. The Appellant raised an additional Ground before CIT(A) challenging this fundamental error. 7. The Ld. CIT(A) rejected the ground stating that it does not emanate from the assessment order.(Please refer page 21 and 23 of CIT(A) order, at page 45 and 47 of paper book -1) 8. In the assessment order, the AO made one more addition, i.e, disallowance of depreciation claimed on goodwill, which has been subsequently allowed by the Hon'ble CIT(A). B. Grounds Before Hon'ble ITAT: The Ld. CIT(A) erred both in law and on facts in rejecting the additional ground and upholding the addition based on an alleged intimation u/s 143(1)(a) of the Income Tax Act 1961, which was never served upon the Appellant. C. Issue for Consideration: ....
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....hat an assessee is entitled to raise additional grounds and make additional claims before the appellate authorities, even if such claims were not made in the return of income originally filed. Please refer para 13 of the aforesaid judgment, at page no. 119 of Paper Book-1. d) And by the Hon'ble High Court of Delhi in the case of Commissioner of Income-tax, Delhi-II v. Jai Parabolic Springs Ltd. [2008] 172 TAXMAN 258 (DELHI) 1.2 Application to present case: ● The issue relates to incorrect computation of income ● All facts are already on record ● No fresh investigation is required Hence, rejection by CIT(A) is illegal and unsustainable. 2 Ground Clearly Emanates from Assessment Order: The finding of CIT(A) is factually incorrect because: ● The assessment order itself adopts income different from returned income.( Pl refer page 10 of the assessment order) ● The variation is explicitly mentioned. Thus, the issue directly arises from the assessment order. 3 Non-Service of Intimation - Violation of Natural Justice ● The alleged inti....
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....ing the Ld. CIT(A) and the Hon'ble Tribunal. ● The Hon'ble Supreme Court itself clarified that the said judgment is limited in its application and does not restrict the jurisdiction of appellate authorities to entertain additional grounds or claims. (D.1.1) At the time of hearing before us, the Learned Authorized Representative for the assessee placed reliance on the aforesaid Paper Book referred to in foregoing paragraph (D) of this order and on the aforesaid written submissions referred to in foregoing paragraph (D.1) of this order. The Learned Departmental Representative placed reliance on the assessment order and on the impugned appellate order of the Learned CIT(A). (D.2) We have heard both sides. We have perused the materials on record. The assessee had contended before the Learned CIT(A) during the appellate proceedings in the office of the Learned CIT(A) that the assessee had not received intimation under section 143(1) of the Act showing the adjustment made by the Income Tax Department under section 143(1) of the Act. Once again, in the written submissions referred to in foregoing paragraph (D.1) of this order, the assessee has contended that t....