Appeal lies before the CIT-A against intimation u/s 143(1) by CPC. No requirement to file rectification

Appeal lies before the CIT-A against intimation u/s 143(1) by CPC. There is no requirement in law to approach CPC for rectification of intimation u/s 143(1), if assessee is aggrieved by the order and denies his liability computed

ABCAUS Case Law Citation:
ABCAUS 3219 (2020) (01) ITAT

In the instant case the appeal was filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals) rejecting his appeal against the intimation issued u/s 143(1) of the Income Tax Act, 1961 (the Act)  by the CPC Bangalore.

The assessee had received  an intimation u/s 143(1) from CPC creating a demand. In the intimation sent from CPC, Income Tax Department, Bangalore it was specifically mentioned that if the assessee was not satisfied with the computation of income, he should file an “online rectification application” for necessary correction.

However, instead of filing a rectification application assessee filed an appeal before the CIT(A) disputing the various disallowances made by the CPC. The assessee also filed detailed computation in support of his grounds.

However, the CIT(A) opined that the assessee was trying to argue case by filing evidences as is done during scrutiny assessments and not u/s 143(1) under centralized computerized processing. The CIT(A) dismissed the appeal and held that in view of the procedures that exist for computerized processing, assessee must first file a rectification application online and contact his jurisdictional AO for follow up only after the online return gets pushed to AO for necessary corrections.

Appeal lies before the CIT-A against intimation u/s 143(1) by CPC.

The Tribunal observed that section 246 of the Act that it is abundantly clear that the appeal lies to the CIT(A) from an order passed / initiation given by the CPC u/s 143(1) & 143(1A) of the Act if the assessee denies his liability pursuance to order passed under section 143(1) of the Act.

The Tribunal opined that the CITA) had wrongly held that no appeal lies against the intimation issued by the CPC under section 143( 1) of the Act unless the assessee approaches the CPC for rectification.

The Tribunal held that there is no requirement in law to approach to the CPC for rectification of the order, if the assessee is aggrieved by the order and denies his liability as per the intimation received by him under section 143 (1) of the Act.

Accordingly, the Tribunal held that the appeal lies before the CIT(A) against the order passed u/s 143(1) of the Act by the CPC. As admittedly the assessee was affected by the order/intimation of the CPC, the matter was remand back to the file of CIT(A) for fresh adjudication on merits.

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