Rectification appeal right: summary dismissal denies substantive challenge; matter remitted for merits adjudication by appellate authority.

Rejection of a rectification intimation issued by the CPC concerning an intimation under s.143(1) and charging interest was challenged; the appellate authority erred by dismissing the appeal in limine without adjudicating the substantive challenge to the rectification. The legal principle applied is that an appeal against a rectification rejection is maintainable and requires merits adjudication rather than summary dismissal where the assessee disputes the charge of interest. The appellate dismissal was set aside and the matter remitted to the Commissioner of Income Tax (Appeals) for fresh consideration on merits.

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Issues: Whether the rejection of rectification intimation under Section 154 by CPC and the dismissal in limine by the Commissioner of Income Tax (Appeals) was correct, and whether the appeal against such rejection is maintainable and requires adjudication on merits.

Analysis: The grievance arises from an intimation issued under Section 143(1) where interest under Section 234B was charged. The assessee sought rectification under Section 154 which was rejected by CPC. The order rejecting rectification is appealable before the Commissioner of Income Tax (Appeals). Dismissing the appeal in limine without adjudicating the substantive challenge to the rectification rejection resulted in denial of the assessee's right to challenge the charge of interest. The matter requires consideration on merits by the appellate authority rather than summary dismissal.

Conclusion: The impugned order dismissing the appeal in limine is set aside and the matter is restored to the file of the Commissioner of Income Tax (Appeals) for fresh adjudication on merits; the appeal is allowed for statistical purposes.

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