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Facts
The assessee's case for AY 2016-17 was reopened under Section 147. The AO made an addition under Section 68 for unexplained cash credit. The CIT(A) remanded the matter back to the AO.
Held
The Tribunal found that the CIT(A) erred in exercising remand power as the assessment was framed under Section 143(3) read with Section 147, and the legal challenge to reopening was not adjudicated. The appeal was restored to the CIT(A) for fresh adjudication.
Key Issues
Whether the CIT(A) erred in exercising remand powers when the assessment was framed under Section 143(3) r.w.s. 147 and the challenge to reopening was not decided.
Sections Cited
143(3), 147, 68, 251(1)(a), 144
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 30.04.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 147 of the Act on 31.03.2022. Having heard rival submissions, the appeal is disposed-off as under.
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.