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Facts
The Revenue appealed the order of the CIT(A) who set aside an ex-parte assessment order for fresh examination by the AO. The assessee filed a Cross Objection.
Held
The Tribunal found no error in the CIT(A)'s order, stating it was a mere setting aside for fresh enquiry. The Tribunal expressed that such appeals are frivolous and a wastage of resources. The Cross Objection was not pressed.
Key Issues
Whether the CIT(A) erred in setting aside an ex-parte assessment order for fresh examination by the AO.
Sections Cited
251(1)(a)
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Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year: 2020-21 The ITO, Vs Shri Piara Singh Gill, Ward – 1, S/o Harchand Singh, Jagraon. VPO – Jhorran, Tehsil – Raikot, Ludhiana. �थायी लेखा सं./PAN NO: BDIPG3875K अपीलाथ�/Appellant ��यथ�/Respondent & C.O. No. 12/CHD/2025 in आयकर अपील सं./ �नधा�रण वष� / Assessment Year: 2020-21 Shri Piara Singh Gill, The ITO, S/o Harchand Singh, Vs Ward – 1, VPO – Jhorran, Jagraon. Tehsil – Raikot, Ludhiana. �थायी लेखा सं./PAN NO: BDIPG3875K अपीलाथ�/Appellant ��यथ�/Respondent Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Assessee by : Shri Sudhir SehgaL, Advocate Date of Hearing : 12.08.2025 Date of Pronouncement : 27.08.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP
The Revenue is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in & C.O. 12/CHD/2025 A.Y.2020-21 2 short ‘the CIT (A)’] dated 04.01.2025 passed in assessment year 2020-21. On receipt of notice, assessee has filed Cross Objection bearing No.12/CHD/2025.
Though the Revenue has taken six grounds of appeal but its basic grievance is that ld. CIT (Appeals) has erred in setting aside the assessment order back to the file of AO for fresh examination as per newly inserted provision 251(1)(a) of the Income Tax Act.
3. With the assistance of ld. Representative, we have gone through the record carefully. It emerges out from the record that assessment order was passed ex-parte. According to the best judgement of the AO, ld. CIT (Appeals) thought it fit to set aside the impugned assessment for re-examination of all the relevant details. We do not find any error in the order of the ld. CIT (Appeals). It is merely setting aside of the assessment order for fresh enquiry. We are of the view that Department ought to have not filed this type of frivolous appeals before the Tribunal. It is mere wastage of resources. It has to be appreciated by the administrating CIT (Appeals)
& C.O. 12/CHD/2025 A.Y.2020-21 3 while giving approval that assessment order was ex-parte and the First Appellate Authority has examined this aspect and only thereafter set aside the issues to the file of AO. Accordingly, we do not find any merit in this appeal, it is dismissed.
The ld. counsel for the assessee did not press the Cross Objection, hence, it is also rejected.
In the result, appeal as well as Cross Objections, both are dismissed.
Order pronounced on 27.08.2025.