Whether assessee is entitled to file appeal to CIT(A) against wrong appeal effect order of AO?
Normally, where any mistake was committed by AO while giving effect to Appellate Orders, rectification petition u/s 154 is filed with AO .
However, AO May interpret the Appeal Order differently or not concurr with thr view of the Assessed or there May be two different interpretation possible from the words in the Appeal Order.
In such casea, the question arise where assessee is aggrieved by the Appeal Effect order of AO ; Whether Assessee is entitled to file Appeal us 246A against that wrong Appeal Effect Order.?
It is Held Yes in favour of Assessee by Several High Courts.
Because an order of Assessment is one in which there is computation of income or computation of tax or both. That computation of income and tax can be make by ITO not only in regular assessment make us 143 but also in orders passed from time to time giving effect to the decisions of Appellate Authorities. The order pass by the ITO giving effect to the decision of the Appellate Authority is as much an assessment order as the one passe by him by way of regular assessment us 143.
Hence, where assesee is aggrieved by the Appeal Effect Order of AO it is very much Appellable to CIT (A).
This view is uphold by HC’S in favour of Assessee.
1.Bakelite Hylam Ltd Vs. CIT .
2.Caltex Oil Refining (India) Ltd vs. CIT.
3.GOPI LAL VS. CIT.
EXCEPTION:
Assesee is not entitle to file appeal before CIT(A) where mistake was committee by AO in the quantum of interest grante us 244A while passing Appeal Effect Order. Quantum of intest mistake to be rectified us 154.
However where there is complete denial of interest us 244A while passing Appeal Effect Order against such Appeal Effect Order Assessee is eligible to file Appeal to CIT(A) us 246A.
This view is fortified by SC in the case of ” Central Provinces Manganese Ore Co. LTD vs. CIT .”.
In Nut Shell against wrong Appeal Effect Order pass by AO ; Assessee is very much entitle to file Appeal to CIT (A) include where complete denial of interest us 244A is make by AO in the Appeal Effect Order.
Mistake in quantum of interest no appeal to CIT(A) only rectification petition to AO.
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