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Facts
The revenue appealed against a CIT(A) order for AY 2014-15. The AO had made a best judgment assessment under Section 147, adding Rs. 230.60 Lacs due to the assessee's non-representation. The CIT(A) then exercised remand power under Section 251(1)(a), directing the AO to make a fresh assessment after considering new evidence.
Held
The Tribunal found that the CIT(A) validly exercised its power of remand, given that the original assessment was on a best judgment basis and the assessee had presented fresh submissions during the first appeal. The Tribunal saw no infirmity in the direction for a fresh assessment.
Key Issues
Whether the CIT(A) validly exercised its power of remand under Section 251(1)(a) to direct a fresh assessment when the original assessment was on a best judgment basis and new evidence was provided on appeal.
Sections Cited
147, 144B, 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�रण वष� / Assessment Year: 2014-15) JCIT (In- situ) Shri Mahesh Goyal बनाम/ 4th Floor, Surya Commercial Centre Circle-1, Ludhiana. Opp. PAU Gate No -1 Vs. Ferozepur Road, Ludhiana �थायीलेखासं./जीआइआरसं./PAN/GIR No. ABGPG-2297-L (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Smt. Priyanka Dhar (Addl. CIT) – Ld. Sr. DR ��थ�कीओरसे/Respondent by : None सुनवाईकीतारीख/Date of Hearing : 05-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. 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 04-12- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144B of the Act on 31-03- 2022. The Ld. AO assessed the income of the assessee by making addition of Rs.230.60 Lacs. The assessee failed to make any effective representation during the course of assessment proceedings. The Ld. CIT(A), considering assessee’s submission and evidences, 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.
We are of the considered opinion that the assessment was framed on best judgment basis and the assessee filed fresh submissions / evidences during first appeal. Since the same would have material bearing on the assessment of the assessee, Ld. AO was directed to make fresh assessment. In our 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 18-08-2025.