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2023 (2) TMI 409 - ITAT BANGALOREValdity of Rectification of mistake u/s 154 - assessment of the assessee was completed u/s 143(3) - CIT(A) adjudicating upon the matter involved in order passed u/s 154 which was neither contested as a separate appeal nor was taken as an additional ground of appeal before Ld.CIT(A) by the assessee - Whether CIT(A) is right in law in admitting additional evidence without recording any reasons thus violating the provisions of Rule 46A(2) and Rule 46 A(3)? - AO disallowed the exemption u/s 54 resulting in an additional tax payable - HELD THAT:- Similar issue came for consideration in the case of Navodaya Foundation Trust [2021 (7) TMI 769 - ITAT BANGALORE] wherein held held by the CIT(A), as issue is not emanating from the order passed u/s 154 of the Act. The assessee cannot use proceedings u/s 154 to file appeal against the order passed u/s 143(1) of the Act. In the present case also, the assessee filed appeal against the order passed by AO u/s 143(3) of the Act dated 14.12.2016. There was no appeal by assessee against the rectification order passed u/s 154 of the Act dated 11.10.2017. Even if the assessee raised the ground in his appeal with regard to addition/deletion made in rectification order passed u/s 154 of the Act before the ld. CIT(A), the ld. CIT(A) must have called for the remand report from the AO, which he failed to do so. Being so, in the interest of justice, we remit the entire issue in dispute to the file of CIT(A) to consider afresh and decide the issue after giving fair opportunity of hearing to both the parties. Appeal of the assessee is partly allowed for statistical purposes.
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