INCOME TAX OFFICER, LUDHIANA vs. SANCHIT MALHOTRA, LUDHIANA

Aforesaid appeal by revenue for Assessment Year (AY) 2022-23 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 13-01-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 r.w.s. 144B of the Act on 07-03-2024. In the assessment order, Ld. AO assessed income of Rs.834.42 Lacs as against returned income of Rs.16.95 Lacs. The assessee failed to make any effective representation during assessment proceedings. 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. 2. 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. 3. The appeal stand dismissed.