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Income Tax Appellate Tribunal, “C’’BENCH: BANGALORE
Before: SHRI N.V. VASUDEVANAND SHRI B.R. BASKARAN
PER B.R. BASKARAN, ACCOUNTANT MEMBER:
The assessee has filed this appeal challenging the order dated 28.2.2019 passed by Ld. CIT(A)-2, Bengaluru and it relates to assessment year 2011-12.
The Ld. A.R. submitted that the assessee has preferred appeal before Ld. CIT(A) challenging the rectification order dated
M/s. ETS Lindgren Engineering India Pvt. Ltd., Bangalore
Page 2 of 3 11.1.2018 passed by the A.O. for assessment year 2011-12. The Ld. A.R. submitted that the assessee had raised a legal ground challenging the validity of rectification proceedings initiated by the A.O. u/s 154 of the Income-tax Act,1961 ['the Act' for short] in Ground No.1 of the Grounds of appeal filed before Ld CIT(A). He submitted that the assessee, in the written submissions filed before Ld. CIT(A,) also advanced arguments on the validity of rectification proceedings. However, the Ld. CIT(A) did not adjudicate the ground so raised by observing that ground No.1 is general in nature and hence no specific adjudication is needed. The Ld. A.R. submitted that the view so taken by Ld. CIT(A) is not correct. He submitted that the question of validity of rectification proceedings goes to the root of the matter and hence the Ld. CIT(A) should have adjudicated the same. Accordingly, he submitted that the adjudication of issues contested on merit would depend upon the decision taken on the above said legal issue. Accordingly, he prayed that all the issues may be restored to the file of the Ld CIT(A) for adjudicating the legal ground referred above and also other issues, if required to be adjudicated.
We heard Ld. D.R. and perused the record. From the examination of the grounds of appeal raised before Ld. CIT(A) and submissions made before him, we notice that the assessee has challenged the validity of rectification proceedings initiated by Ld. CIT(A). Since it goes to the root of matter, the Ld. CIT(A) should have adjudicated the said legal issue first before adjudicating the grounds urged on merits. However, we notice that the Ld. CIT(A) has failed to adjudicate the legal ground urged by the assessee before him. In this view of the matter, we find merit in the contentions of the Ld. A.R. that the legal ground and all other grounds be restored to the file of the Ld. CIT(A) for adjudicating the legal ground first and then the other grounds, if required.
M/s. ETS Lindgren Engineering India Pvt. Ltd., Bangalore Page 3 of 3 Accordingly, we set aside the order passed by Ld. CIT(A) and restore all the issues to his file for adjudicating all of them afresh.
In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 26th Nov, 2020.