Case Law Details
Areca Trust Vs CIT (Appeals) (ITAT Bangalore)
The appellant, Areca Trust, filed an appeal against the order passed by the CIT (Appeals) under section 250 of the Income Tax Act. The grounds raised in the appeal challenged the legality and validity of the Appellate order issued by the CIT (Appeals) and questioned various aspects of the assessment order.
The appellant, a Trust, had filed its return of income for Assessment Year 2018-19, declaring a total income of Nil. The return was processed under section 143(1) of the Act, and an amount of Rs.23,29,62,417/- was considered as income chargeable to tax at a special rate. The assessment was selected for scrutiny, and an assessment under section 143(3) was completed on 12.02.2021 based on the intimation issued under section 143(1) of the Act.
The appellant raised several grounds challenging the assessment and CIT (Appeals) order. They contended that the assessing officer (AO) erred in reiterating the addition made in the intimation issued under section 143(1) during the assessment under section 143(3). The appellant also argued that the CIT (Appeals) didn’t properly address the grounds raised before them and failed to consider the merits of the appeal.
The ITAT analyzed the impugned Assessment Order and the arguments raised by the appellant. It noted that the assessment completed under section 143(3) solely relied on the adjustment made in the intimation under section 143(1). The ITAT observed that no independent discussion was present in the assessment order regarding the income assessed. It cited section 246A of the Act, which specifically provides for an appeal against intimation under section 143(1). Therefore, the ITAT concluded that the cause of action for the appellant arose from the intimation issued under section 143(1) and that the appeal should have been filed against it.
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