THATI SATISH KUMAR,HYDERABAD vs. ITO, WARD-1(12), HYDERABAD

Facts

The assessee, a non-filer, engaged in significant financial transactions during AY 2017-18, leading the AO to reopen assessment under Section 147/148. Due to non-response, a best judgment assessment was passed under Section 147 read with Section 144/144B, with a subsequent rectification order under Section 154 read with Section 147 applying Section 115BBE for additions under Sections 68 and 69. The assessee appealed both the assessment order and the rectification order to the CIT(A), but the CIT(A) dismissed the appeal concerning the rectification order while the main appeal was still pending.

Held

The Tribunal held that the appeal against the rectification order, applying Section 115BBE, is intrinsically linked to the main appeal challenging the underlying additions under Sections 68 and 69. It ruled that the CIT(A) erred in deciding the rectification appeal without considering the pending main appeal on merits. Therefore, the Tribunal set aside the CIT(A)'s order and remanded the matter back for reconsideration of both appeals together.

Key Issues

Whether the CIT(A) was justified in deciding an appeal against a rectification order (applying Section 115BBE) when the main appeal challenging the underlying assessment and additions (under Sections 68 and 69) was still pending adjudication.