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Facts
The revenue appealed an order by the CIT(A) which directed the Assessing Officer (AO) to conduct a fresh assessment. The original assessment was framed ex-parte on a best judgment basis after the assessee failed to make effective representation. The AO had reopened the case and made additions for alleged bogus purchases.
Held
The Tribunal held that the CIT(A) validly exercised its power of remand. While the CIT(A) did not adjudicate the legal grounds raised by the assessee, the assessee was granted liberty to plead them before the AO.
Key Issues
Whether the CIT(A) properly exercised its power of remand to direct a fresh assessment. Whether the assessee should be permitted to raise legal grounds before the AO.
Sections Cited
147, 144, 144B, 251(1)(a)
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by revenue for Assessment Year (AY) 2014-15 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 10-01-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 r.w.s. 144B of the Act on 26-03-2022. The Ld. AO reopened the case of the assessee and made addition of alleged bogus purchases for Rs.375.25 Lacs. The assessee failed to make any effective representation during assessment proceedings. Considering this fact, 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 appeals before us. The Ld. CIT-DR has opposed remand back of the matter whereas Ld. AR challenged the reassessment juri iction of Ld. AO on legal grounds.
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. So far as the legal grounds as raised by Ld. AR are concerned, the same has not been adjudicated by Ld. CIT(A). Therefore, the assessee is at liberty to plead and prove the same before Ld. AO. All the issues are kept open.
The appeal stand dismissed. Order pronounced on 02-09-2025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 02-09-2025. आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant
""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF