ITAT Agra remands matter to CIT (A) for fresh adjudication on appeal against section 143(1) order.

The ITAT Agra remanded the matter back to the CIT (A) for fresh adjudication on merits, acknowledging that the appeal lies before the CIT (A) against the order passed under section 143(1) by the CPC. The grounds raised by the appellant were treated as allowed for statistical purposes, and the appeal was considered allowed on those grounds.

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Issues:
1. Appeal against order of Commissioner of Income Tax (Appeals)
2. Disallowance of expenditures under section 143(1)
3. Jurisdiction of CPC in making adjustments under section 143(1)
4. Natural justice principles in disallowance
5. Consideration of additional grounds of appeal
6. Disallowance of specific expenses

Analysis:
1. The appeal was filed against the order of Commissioner of Income Tax (Appeals) for the assessment year 2016-17. The appellant challenged the dismissal of the appeal by CIT (A) on the grounds that the intimation under section 143(1) was appealable under section 246A, and the issue should have been adjudicated on merits.

2. The appellant contested the disallowance of expenditures under section 143(1) by CPC, arguing that it was a debatable issue and not a mistake apparent from record. The CIT (A) directed the appellant to file an online rectification application before the CPC, which was challenged.

3. The appellant raised concerns regarding the jurisdiction of CPC in making adjustments under section 143(1), stating that the CPC acted beyond its authority. It was argued that the disallowance made without providing an opportunity to the assessee violated natural justice principles.

4. The appellant highlighted that no opportunity was given by the CPC before making the disallowance, which was deemed against the principles of natural justice. The appellant insisted that the disallowance should be deleted due to this procedural flaw.

5. The appellant contended that the additional grounds of appeal were not considered by the CIT (A), which was a violation of procedural fairness. The failure to address these grounds raised concerns about the completeness of the decision-making process.

6. Specific expenses, such as payments made to entities for electricity and rent, were disputed by the appellant. The appellant argued that these expenses were genuine and made for business exigencies, emphasizing the need for their allowance and deletion of the additions made.

In conclusion, the ITAT Agra remanded the matter back to the CIT (A) for fresh adjudication on merits, acknowledging that the appeal lies before the CIT (A) against the order passed under section 143(1) by the CPC. The grounds raised by the appellant were treated as allowed for statistical purposes, and the appeal was considered allowed on those grounds.

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