ANAND SALES, BHILAI,BHILAI vs. INCOME TAX OFFICER WARD 2(1), BHILAI, BHILAI

In this case, assessment order has been passed dated 08.12.2025 u/s. 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (for short ‘the Act’). That there was no compliance by the assessee before the A.O. Accordingly, the Ld. CIT(Appeals)/NFAC remanded the matter back to the file of the A.O observing as follows: “6. Examination of the Issue and Decision: 6.1 During assessment proceedings, appellant remained non-compliant and the assessment order was passed u/s 147 r.w.s 144 r.w.s 144B of the Act. Section 142(2) requires that due enquiries should be conducted to arrive at true and correct income of the taxpayer for the given year. Section 143(3) specifies that assessee should present evidence in support of the computation of taxable income in their return of income, and, may also submit any further evidence as required by the Assessing Officer. Appellant, however, has now raised grounds against additions made and has submitted submissions and documents, for consideration of the revenue. 6.2 Accordingly, in view of the power conferred vide proviso to clause (a) of sub section (1) of section 251 of the Act applicable w.e.f. 01/10/2024, the assessment order dated 08.12,2025 passed u/s 147 r.w.s 144 r.w.s 144B of the Act is set aside and the case of appellant is referred back to the file of the AO for fresh assessment after affording reasonable opportunities to the appellant and diligently adhering to the principle of natural justice. The appellant is directed to

It is further noted from Form 35 in the grounds of appeal before the Ld. CIT(Appeals)/NFAC, the assessee had assailed certain legal grounds which remained un-adjudicated by the First Appellate Authority. It is mandatory for the Ld. CIT(Appeals)/NFAC to adjudicate legal grounds and it could not be left un-adjudicated and simply remanded to the file of the A.O. The First Appellate Authority needs to examine the legal issues before restoring the matter, if at all, to the file of the A.O. In the present scenario, as apparent from the findings of the Ld. CIT(Appeals)/NFAC, legal grounds assailed before the said authority were left un-adjudicated. Hence, in the interest of substantive justice, I set-aside the order of the Ld. CIT(Appeals)/NFAC and remand the matter back to its file for adjudication of legal grounds assailed by the assessee as per law while complying with the principles of natural justice. The assessee shall duly comply with the hearing notices issued by the First Appellate Authority.

In the result, appeal of the assessee is allowed for statistical purposes.