BRIJESH DEVI,GHAZIABAD vs. AO WARD-1(5), GHAZIABAD

This appeal by Revenue is directed against the order of National Faceless Appeal Centre (NFAC), Delhi [for short hereinafter referred to as the "(Ld. NFAC)"] dated 05.10.2024 for Assessment Year 2011-12. The word Act hereinafter in this order shall mean the Income Tax Act, 1961.

At the outset the ld counsel for the Assessee submitted that the controversy in the case involves an addition of Rs. 60,78,000/- made by the ld AO vide his order u/s 144 read with Section 148 of the Act dated 12.12.2018. Inviting reference to his detailed paper book, the ld counsel argued that it had contested before the ld CIT(A) the legality/ jurisdictional Brijesh Devi sufficiency of the assessment made as well as merits of the addition. It was contended that the ld CIT(A) has merely set aside the case to the ld AO for assessment de novo without adjudicating the legal ground taken by him. Thus, our attention was invited to grounds of appeal Nos. 1, 2, 3 and 6 raised before the ld CIT(A) on legal grounds. It was contended that the impugned appellate order does not addresses the said grounds of appeal.

Per contra the ld DR relied upon the orders of the lower authorities.

We have heard rival submissions in the light of the materials available on the record. We have noted that in para 5 of his appellate order, while delivering his decision the ld CIT(A) has not touched upon the impugned legal grounds. He has merely concluded that the details filed by the Assessee require extensive verification for which no resource base is available with the ld CIT(A) and hence, he is constrained to set aside the matter to ld AO. Before us placing reliance on his voluminous paper book the Assessee has vehemently argued that no notice was served upon him as mentioned in the note sheet of the ld AO and which has been placed on page 88 of the paper book. We find sufficient force in the argument of the Assessee regarding non adjudication of legal grounds by the ld CIT(A). Accordingly, in the interest of justice, we set aside the order of the ld CIT(A) and direct him to readjudicate all the all the grounds including legal grounds raised by the Assessee after giving due opportunity of being heard and in accordance with law. The Assessee shall be at liberty to produce all the evidences including those produce before us to support its arguments. Accordingly, all the grounds of Assessee are allowed for statistical purposes.