GREEN APPLE SERVICED APARTMENTS,,CHENNAI vs. ITO, NCW - 16 (3),, CHENNAI

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals)-10, Chennai [CIT(A)] dated 26.08.2020 in the matter of intimation issued by CPC, Bengaluru u/s. 154 of the Act on 04.02.2020.

The Ld. AR submitted that the appeal has been dismissed on the ground that the assessee preferred an appeal against rectification order 2 - passed u/s. 154 but the assessee did not file any appeal against intimation issued u/s 143(1). The Ld. Sr. DR reiterated the position taken by Ld. CIT(A) in the impugned order. 3. The material facts are that the return of income as filed by the assessee on 31.03.2018 was processed by CPC, Bengaluru u/s 143(1) on 06.08.2019 wherein CPC enhanced the income by changing heads of income. The assessee filed rectification against the same on 13.01.2020 against which rectified intimation was issued on 04.02.2020 denying the adjustment as sought by the assessee. The assessee filed appeal against the same. However, Ld. CIT(A) dismissed the appeal on the ground that the assessee did not file any appeal against intimation issued u/s 143(1) and therefore, the assessee could not make a back door entry by filing appeal against subsequent order passed u/s 154. Aggrieved, the assessee is in further appeal before us. 4. We find that aggrieved by intimation dated 06.08.2019, the assessee filed rectification. However, in the rectified order, the grievance of the assessee was not settled and accordingly the assessee preferred further appeal against rectified order passed on 04.02.2020. We find that this order is an appealable order which fact has been overlooked by Ld. CIT(A). The grievance of the assessee against intimation issued u/s 143(1) as well as rectified intimation is the same. There was no requirement that the assessee should have first filed appeal against intimation u/s 143(1) and only thereafter, it could assail rectified order. Therefore, we set aside the impugned order and direct Ld. CIT(A) to consider the grievance of the assessee and dispose-off the appeal by a speaking order. Needless to add that adequate opportunity of hearing shall be granted to the assessee.