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Facts
The revenue appealed an order by the CIT(A) which directed the AO to make a fresh assessment under Section 144 r.w.s. 144B. The original assessment order by the AO assessed income significantly higher than the returned income, and the assessee had failed to make an effective representation.
Held
The Tribunal held that the CIT(A) validly exercised its remand power given the assessee's submissions and evidence during the first appeal that had material bearing on the assessment. No infirmity was found in the CIT(A)'s order.
Key Issues
Whether the CIT(A) validly exercised its power of remand to direct the AO to make a fresh assessment when the original assessment was made on a best judgment basis due to the assessee's failure to represent effectively.
Sections Cited
144, 144B, 251(1)(a)
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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
(िनधा�रण वष� / Assessment Year: 2022-23) ITO-Ward No.3(1) Sh. Sanchit Malhotra बनाम/ Aaykar Bhawan H. No 1306, Sardar Nagar Vs. Rishi Nagar, Ludhiana.141001. Basti Jodhewal, Ludhiana. �थायीलेखासं./जीआइआरसं./PAN/GIR No. BJGPM-8369-G (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Smt. Tarundeep Kaur (CIT) (Virtual) – Ld. DR ��थ�कीओरसे/Respondent by : None सुनवाईकीतारीख/Date of Hearing : 02-09-2025 घोषणाकीतारीख /Date of Pronouncement : 04-09-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. 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.
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 stand dismissed. Order pronounced on 04-09-2025