Karnataka State Beverages Corporation Ltd .v. ACIT (2020) 121 taxmann.com 89 / (2021) 277 Taxman 58 (Karn) (HC)

S. 251 : Appeal – Commissioner (Appeals) – Powers – Doctrine of merger – CIT(A) dismissed appeal as being infructuous basis notice issued u/s 263 by CIT on grounds unrelated to that before CIT(A) – CIT(A) ought to have adjudicated appeal on merits hence matter remanded back to CIT(A).[ S.263 ]

Held by the Court that taking into account the fact that appeal is maintainable in respect of the subject matter, which does not pertain to grounds covered in notice under section 263 of the Act, the CIT(A) ought to have adjudicated the appeal on merits and in respect of the grounds, which were not the subject matter of notice under section 263 of the Act.  Matter remanded back to CIT(A). (ITA No. 102 of 2012 dt. 21-09-2020) (AY. 2004-05)