Held allowing the appeal the Court held that\u00a0 the intimation under section\u00a0143(1)(a)\u00a0having been set aside, no adjustment made under section\u00a0143(3)\u00a0survived. Once the \u201cobject\u201d, i. e., the intimation stood removed, its \u201cshadow\u201d, i. e., the consequence could not survive. In view of the surviving limitation to file a revised return, the assessee was within its rights to file the revised return. The assessee\u2019s return had been processed under section\u00a0143(1)(a)\u00a0and the Assessing Officer had disallowed part of the interest payments claimed by the assessee and the Commissioner (Appeals) was of the view that the assessee ought to have been granted opportunity of hearing and had accordingly, set aside the intimation and had remitted the matter to the Assessing Officer to proceed afresh. The correctness of that order was not challenged by the Revenue and hence had attained finality. Consequently, by way of legal effect caused, the original return of the assessee became pending, at the stage of processing. One year time from the end of the assessment year 1995-96 having survived, the assessee had filed its revised return and had not been rejected by the Assessing Officer. Instead of processing the return as revised, the Assessing Officer had initiated scrutiny assessment proceedings, under section\u00a0143(3)\u00a0computing the net loss. The provisions of section\u00a0143(1A), would apply and remain confined only to situations covered under section\u00a0143(1)(a). Consequently, the assessment proceedings and order passed under section\u00a0143(3)\u00a0were invalid. \u00a0\u00a0That on the facts involving demand of additional tax on simple processing of income, penalty being imposable for concealment of income consequent to scrutiny assessment order under section\u00a0143(3)\u00a0had no application. The processing of a return under section\u00a0143(1)(a)\u00a0was not an assessment order. (AY. 1995-96)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 143(1) : Assessment-Intimation-Revised return filed within limitation period-Scrutiny assessment ignoring revised return not valid-Processing of return under Section 143(1)(A) not an assessment order-Penalty Not Imposable [S. 143(1)(a), 143(IA) 143(3), 260A, 271 (1)(c)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48562","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cDg","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48562"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48562\/revisions"}],"predecessor-version":[{"id":49012,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48562\/revisions\/49012"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}