The court emphasizes the importance of adjudicating substantive appeals on merits rather than procedural dismissals in tax cases.

ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

These appeals filed by the assessee are against the separate orders of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2020-21 & 2021-22 dated 07.02.2024. As the issues in both the appeals are common, they are being decided vide this common order for the sake of convenience and brevity.

2. The assessee is in appeal before this Tribunal raising the following grounds of appeal:

AY 2020-21

“For that the Learned Commissioner of Income Tax (Appeals) was unjustified in law as well as on facts in dismissing the appeal in limine on the ground that the cause of action did not lie in the order passed u/s 154.

For that the Learned Commissioner of Income Tax (Appeals) erred in failing to hold that the CPC was unjustified in failing to rectify the erroneous order issued by it u/s 143(1) in its subsequent order passed u/s 154.

For that the Learned Commissioner of Income Tax (Appeals) was wrong in failing to direct rectification of the erroneous order issued by the CPC wherein a disallowance of Rs 1,82,71,100/- was made in a manner which was erroneous and self-contradictory.

For that the Learned Commissioner of Income Tax (Appeals) was wrong in failing to strike down the nonspeaking order issued by the CPC wherein a disallowance of Rs 1,82,71,100/- was made without providing any reason for the same in violation of the principles of Natural Justice.

For that the appellant urges leave to add to, modify or withdraw any ground of appeal, before or at the time of hearing of the appeal.”

AY 2021-22

“For that the Learned Commissioner of Income Tax (Appeals) was unjustified in law as well as on facts in dismissing the appeal in limine on the ground that the cause of action did not lie in the order passed u/s 154.

For that the Learned Commissioner of Income Tax (Appeals) erred in failing to hold that the CPC was unjustified in failing to rectify the erroneous order issued by it u/s 143(1) in its subsequent order passed u/s 154.

For that the Learned Commissioner of Income Tax (Appeals) was wrong in failing to direct rectification of the erroneous order issued by the CPC wherein a disallowance of Rs 1,43,26,742/- was made in a manner which was erroneous and self-contradictory.

For that the Learned Commissioner of Income Tax (Appeals) was wrong in failing to strike down the order issued by the CPC wherein a disallowance of Rs 1,43,26,742/- was made for a reason which was patently wrong and erroneous.

For that the appellant urges leave to add to, modify or withdraw any ground of appeal, before or at the time of hearing of the appeal.”

3. We will first take up the appeal for the A.Y. 202-21. The brief facts of the case of the assessee for A.Y. 2020-21 are that the assessee is a charitable organization involved in imparting of education and registered u/s 12A of the Act. For the impugned assessment year, it filed its return of income on the extended due date i.e. 15.02.2021. Out of the total receipts, a major amount was spent for the purpose of education and a sum of Rs. 1,69,833/- was accumulated for application to charitable purposes and, therefore, the entire receipts of Rs. 1,84,40,933/- were claimed as exempt u/s 11 of the Act. An intimation u/s 143(1) of the Act was issued raising a demand of Rs. 79,85,960/-. The order was erroneous in the opinion of the assessee as the revenue expenditure at page 20, the Annexure-Schedule ER computed by the CPC was claimed at Rs. 1,82,71,100/-, while the same was shown as NIL at Sl 04 in the computation provided at page 15 of the order. The assessee moved an application for rectification of the intimation on 08.09.2022 but the same was disposed off vide order dated 12.12.2022 and the mistake was left unamended. Aggrieved wit