Family Physicians Association Vs ADIT (ITAT Bangalore)
Appeal Filed Against Proposed Adjustment U/s 143(1) Not Maintainable – ITAT Allows Assessee to File Fresh Appeal Against Actual Intimation
In this case, the assessee, a charitable trust, filed return for AY 2017-18 claiming accumulation of income u/s 11(2) but failed to file Form-10. While processing the return u/s 143(1), CPC disallowed the accumulation claim and raised demand. The assessee filed an appeal before CIT(A) against a communication dated 29-10-2018 which only proposed adjustment under section 143(1).
CIT(A) dismissed the appeal in limine holding that the communication proposing adjustment was not an appealable order u/s 246A. Before the Tribunal, the assessee contended that Form-10 was later filed along with a revised return and rectification request, and that the demand arose only from the actual intimation dated 09-03-2019.
ITAT Bangalore held that a communication proposing adjustment is not an “order” or “intimation” determining tax liability and hence not appealable. Therefore, CIT(A) was justified in dismissing the appeal as not maintainable. However, since the dismissal was on a technical ground and the actual appealable intimation u/s 143(1) was issued on 09-03-2019, the Tribunal observed that the assessee is free to file a fresh appeal before CIT(A) against that intimation, and the CIT(A) should consider the issue including limitation and decide the matter on merits after giving opportunity of hearing.
Accordingly, the appeal before the Tribunal was disposed of with liberty to the assessee to pursue the appropriate remedy.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The present appeal, filed at the instance of the assessee, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereafter the Act) by the office of Commissioner of Income Tax, Appeal, ADDL/JCIT(A) Faridabad (hereafter learned CIT(A)) for the assessment year 2017-18, dated 31st July 2025.
