DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE, PUNE, PUNE vs. SWAMI SHANTI PRAKASH ASHRAM TRUST, THANE

The captioned appeal at the instance of Revenue pertaining to A.Y. 2015-16 is directed against the order dated 30.04.2025 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 26.03.2022 passed u/s.147 r.w.s.144B of the Act.

When the appeal was called for, none appeared on behalf of the respondent-assessee despite due service of notice of hearing. We proceed to adjudicate the appeal with the assistance of ld. Departmental Representative.

Ld. Departmental Representative referring to the grounds of appeal submitted that ld.CIT(A) erred in setting aside the assessment order treating as assessment order passed u/s.144 of the Act. However, during the course of assessment proceedings, assessee has furnished the submissions on 21.03.2022 and 23.03.2022 and that the assessment has been framed u/s.147 r.w.s.144B of the Act and not u/s.144 of the Act. He therefore submitted that ld.CIT(A) ought to have dealt with merits of the case rather than setting aside the issues to the file of Ld. Jurisdictional Assessing Officer.

We have heard the ld. Departmental Representative and perused the record placed before us. In the impugned order, ld.CIT(A) has restored the issue to the file of ld. Assessing Officer observing that the assessment order has been framed u/s.144 as best judgment assessment. However, on going through the assessment order, we observe that the assessment has been framed u/s.147 r.w.s.144B of the Act. Also, assessee has made various submissions before ld. AO. Ld.CIT(A) remitted the issue to the file of Assessing Officer for making fresh assessment in light of amendment made in section 251(1)(a) which is conceived. Section 251(1)(a) of the Act provides that “In disposing of an appeal, the Commissioner (Appeals), in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment provided that there such appeal is against an order of assessment made u/s.144 of the Act”. In the instant case, the assessment order has been passed u/s.147 r.w.s.144B of the Act. Under these given facts and circumstances, ld. CIT(A) ought to have dealt with merits of the case by passing a speaking order as contemplated u/s.250(6) of the Act in light of judgment of Hon’ble Bombay High Court in the case of PCIT (C) vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay). Since ld.CIT(A) has not adhered to the provisions of section 250(6) of the Act, we deem it proper to restore the issues to the file of ld.CIT(A) for denovo adjudication. Needless to mention that ld.CIT(A) in the course of set-aside proceedings shall afford a reasonable opportunity of being heard to the respondent- assessee. Respondent-assessee is directed to update email id and contact detail on ITBA portal. Respondent-assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds of appeal raised by the Revenue are allowed for statistical purposes.

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