Merger of Intimation under Section 143(1) With Subsequent Assessment Order under Section 143(3)

ISSUE FOR CONSIDERATION

The return of income filed by the assessee first gets processed by the CPC under section 143(1) of the Income-tax Act, 1961 (‘the Act’), and an intimation is issued to the assessee. While processing the return of income, adjustments may be made to the total income as provided in section 143(1) for the reasons as specifically provided in clause (a) of section 143(1) such as arithmetical error, incorrect claim, etc.

Thereafter, a few of the returns are also selected for regular assessment, popularly referred to as scrutiny assessment, by issue of notice under section 143(2) of the Act. The consequential order of regular assessment is then passed under section 143(3) or 144, as the case may be.

In such cases, where the intimation is issued first and then the regular assessment order is passed, the issue often arises as to whether the intimation issued u/s. 143(1) merges with the subsequent assessment order passed. This issue is relevant mainly from the point of view of maintainability of the appeal filed against the intimation issued u/s. 143(1).

In few of the cases, the tribunals have taken a view that the appeal against the intimation issued u/s. 143(1) becomes infructuous in cases where the assessment order has been passed subsequently u/s. 143(3); and th