The assessee filed return of income declaring nil income under the head “Business and Profession”. The return was processed under section 143(1), and an adjustment of ₹2,99,65,837 was made under the head “Income from Business or Profession”. Subsequently, the case was selected for scrutiny, and a notice under section 143(2) was issued before the intimation under section 143(1) was received. The Assessing Officer thereafter passed an order under section 143(3), wherein the same amount of ₹2,99,65,837 was taken as business income without assigning any independent reasoning. The assessee filed rectification applications against the intimation under section 143(1), which were rejected, and thereafter challenged the addition in appeal against the assessment order under section 143(3). The CIT(A), after examining the return and the assessment records, held that the assessee had reported nil business income and that the addition was unsustainable. The Tribunal held that once the assessment under section 143(3) was completed, the earlier proceedings under section 143(1) merged with the scrutiny assessment, particularly when the very same adjustment formed part of the assessment order. Therefore, the assessee was entitled to challenge the addition in appeal against the order under section 143(3), notwithstanding that no separate appeal had been filed against the intimation under section 143(1). Relying upon the judicial precedents cited before it, the Tribunal upheld the order of the CIT(A) and dismissed the Revenue’s appeal. (AY. 2017-18) (ITA No. 3722/Mum/2026 dt. 28-08-2026)