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Facts
The revenue appealed the CIT(A)'s order for AY 2022-23, which had remanded the case for fresh assessment. The original assessment by the AO was on a best judgment basis under Section 144 read with Section 144B, making additions under Section 68 and disallowing expenses. The CIT(A) invoked its remand powers under Section 251(1)(a) because the assessee presented fresh evidence during the first appeal, having failed to effectively represent during the initial assessment.
Held
The Tribunal held that the CIT(A) validly exercised its remand powers under Section 251(1)(a). It noted that the assessment was made on a best judgment basis, and the fresh submissions by the assessee during the first appeal had a material bearing on the case. Therefore, the direction for a fresh assessment by the AO was deemed appropriate and without infirmity.
Key Issues
Whether the CIT(A) validly exercised its remand powers under Section 251(1)(a) to direct a fresh assessment, considering the original assessment was on a best judgment basis and the assessee submitted fresh evidence in the first appeal.
Sections Cited
144, 144B, 68, 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: 2022-23) ITO - Ward No 5(1) M/s Nand Mangal Steels Limited बनाम/ Aayakar Bhawan, Rishi Nagar 1007, GT Road, Miller Ganj, Vs. Ludhiana. Ludhiana. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCN-6102-D (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Smt. Kusum Bansal (CIT) – Ld. DR ��थ�कीओरसे/Respondent by : Shri J.S. Bhasin (Advocate) – Ld. AR 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) 2022-23 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 05-12- 2024 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 01-03- 2024. In the assessment order, Ld. AO made additions u/s 68 and disallowed trade payables and expenses for Rs.347.80 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 Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT CHANDIGARH