CIT Appeals must decide on Merits

The Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) held that the Commissioner (Appeals) erred in refusing to adjudicate an assessee's challenge to an adjustment made under Section 143(1) of the Income-tax Act merely because no separate appeal had been filed against the intimation. 

The Tribunal observed that where such adjustment forms part of the assessed income in a subsequent scrutiny assessment, the assessee is entitled to challenge it in appellate proceedings against the assessment order. 

The matter was accordingly remanded to the CIT(A) for a decision on merits.