DCIT-1(2)1, MUMBAI, MUMBAI vs. PREMIER MEDICAL CORPORATION PRIVATE LIMITED, VALSAD

The grounds of appeal are as under: 1. “Whether on the facts and circumstances of the case the Ld. CIT(A) erred in giving relief to assessee on the basis of an incomplete remand report which got visible to CIT(A) due to a systemic glitch in the ITBA portal of the Income Tax Department?” 2. “Whether on the facts and circumstances of the case and in the interest of justice, since relief to the assessee has been given on the basis of an incomplete remand report which got visible to CIT(A) due to a systemic glitch in the ITBA portal of the Income Tax Department, the matter may be set aside to the file of the AO of to the file of the Ld. CIT(A) for fresh consideration?” 3. In this case, the assessee company filed original and subsequent revised income tax return. The case was selected for CASS complete scrutiny under National Faceless Assessment Centre (NFAC) on the issue of Foreign Outward Remittance. The company is engaged in manufacturing of Rapid Diagnostic Test Kits. It was noted by the AO that during the year under consideration, the assessee had made huge amount of foreign remittances and the nature of the remittances made by the assessee was not explained. Despite several notices issued during assessment proceedings, it failed to submit any documentary evidence such as contract note, purchase bill, sale bill, invoices for verification of genuineness in support of such foreign remittances made. Considering no response from the assessee and failure on the part of the it to submit the basic details regarding such foreign remittances made, the nature,

We have duly considered all the relevant facts of the case and find that the ld.CIT(A) has taken into consideration the contents of the Remand report and allowed substantial relief to the assessee. However, the Revenue has taken the plea that the said report was incomplete in as much as it was not endorsed and routed through the Addl.CIT concerned, being the controlling officer of the AO. As per existing Departmental instructions, the remand report needs to be necessarily vetted by the Range Head. It is submitted that the said report due to technical glitch was uploaded on the departmental portal though it was sent to the Range Head and the ld.CIT(A) has duly considered the same in giving relief to the assessee. It is further requested to set aside the appellate authority and the mater may be sent back to the ld.CIT(A) who may be directed to obtain the remand report received through the Range head and decide the matter afresh. The ld.AR has not objected to this proposition since the assessee would not be prejudiced in any manner. Accordingly, we deem it fit to remand the issue back to the ld.CIT(A) for deciding the appeal of the assessee de novo after taking into account the duly approved remand report and after allowing due opportunity of hearing to both the sides following the principles of natural justice.

In the result, the appeal of the Revenue is allowed for statistical purposes only. Order pronounced in the open court on 03/03/2025. SANDEEP GOSAIN PRABHASH SHANKAR (न्याययक सदस्य /JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER)