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Facts
The Revenue appealed against the CIT(A)'s order for AY 2017-18. The AO had made an addition of Rs. 658.78 Lacs under Section 69A on a best judgment assessment under Section 147. The CIT(A), considering the assessee's submissions, exercised its remand power under Section 251(1)(a) and directed the AO to conduct a fresh assessment, which the Revenue contested.
Held
The Tribunal upheld the CIT(A)'s decision, agreeing that the original assessment was on a best judgment basis and the assessee's submissions warranted a fresh assessment. It ruled that the CIT(A) had validly exercised its remand power under Section 251(1)(a) and found no infirmity in the order.
Key Issues
Whether the CIT(A) validly exercised its power of remand under Section 251(1)(a) for a fresh assessment when the original assessment was on a best judgment basis and new evidence was submitted by the assessee.
Sections Cited
147, 69A, 251(1)(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रणवष� / Assessment Year: 2017-18) ITO Ms. Nishi Garg Rom No 210 First Floor 73, Bharat Nagar Chowk बनाम/ Vs. Aaykar Bhawan Ludhiana Rishi Nagar, Ludhiana. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AHJPG-0591-J (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�क�ओरसे/Appellant by : Smt. Tarundeep Kaur (CIT)(Virtual) – Ld. DR ��यथ�क�ओरसे/Respondent by : Shri Pankaj Bhalla (CA)-Ld. AR सुनवाईक�तार�ख/Date of Hearing : 04-09-2025 घोषणाक�तार�ख /Date of Pronouncement : 22-09-2025 आदेश / O R D E R Per Laliet Kumar (Judicial Member) 1. Aforesaid appeal by Revenue for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 23-01-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 147 of the Act on 27-05-2023.In the assessment order, Ld. AO made addition of Rs.658.78 Lacs u/s 69A for want of any representation from the assessee. Considering this fact and in view of submissions made by the assessee during first appeal, Ld. CIT(A) exercised remand power in terms of proviso to Sec.251(1)(a) and directed Ld. AO to make fresh assessment. So aggrieved, the revenue is in further appeal before us. The Ld. CIT-DR has opposed remand back of the matter.
We are of the considered opinion that the assessment was framed on best judgment basis. Considering assessee’s submissions / evidences during first appeal which would have material bearing on the assessment of the assessee, Ld. AO was directed to make fresh assessment. In our considered opinion, on the facts of the case, the power of remand has validly been exercised by Ld. CIT(A) and we find no infirmity in the same.
The appeal stands dismissed. Order Pronounced on 22-09-2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 22-09-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT CHANDIGARH