SHIV SHANKER,YAMUNA NAGAR HARYANA vs. INCOME TAX OFFICER, WARD 5 YAMUNANAGAR, YAMUNANAGAR HARYANA.

It emerges that the assessee’s case was reopened and the assessee’s objection against reopening were dismissed by Ld. AO vide separate order dated 11.03.2022. In the assessment order, Ld. AO disbelieved the sales of the assessee as made to Shri Sunil Kumar prop. Aggarwal Enterprises and added the same as unexplained cash credit u/s 68. The assessment was framed u/s 143(3) r.w.s. 147 of the Act. The Ld. CIT(A), assuming the assessment to be u/s 144, remanded the matter back to Ld. AO to reconsider assessee’s submissions / explanations. Aggrieved, the assessee is in further appeal before us.

We find that the assessment was framed u/s 143(3) r.w.s. 147 of the Act and therefore, Ld. CIT(A) erred in exercising the remand power u/s 251(1)(a). Further, the assessee’s legal challenge to reopening have not been adjudicated by Ld. CIT(A). Considering the same, we set aside the impugned order and restore the appeal back to Ld. CIT(A) for de novo adjudication with a direction to the assessee to plead and prove its case forthwith. All the issues are kept open.