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Facts
The revenue filed an appeal against the CIT(A)'s order for AY 2017-18. The original assessment was framed by the AO on a best judgment basis under Section 147 read with Section 144, making an addition of Rs.199.59 Lacs, as the assessee failed to provide representation. The CIT(A) exercised remand power under Section 251(1)(a) and directed the AO to conduct a fresh assessment.
Held
The Tribunal upheld the CIT(A)'s decision, finding that the remand power was validly exercised. This was due to the original assessment being a best judgment assessment and the assessee submitting fresh evidence during the first appeal, which had a material bearing on the assessment.
Key Issues
Whether the CIT(A) validly exercised remand power under Section 251(1)(a) to direct a fresh assessment, given the original best judgment assessment and new evidence submitted by the assessee in appeal.
Sections Cited
147, 144, 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: 2017-18) ITO-Ward 2(1) M/s Romex Industrial Corporation बनाम/ Aaykar Bhawan 439/1A, Naya Mohalla Brown Road Rishi Nagar Ludhiana. Ludhiana (East) Central Post Office S.O. Vs. Ludhiana. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AABFR-6473-K (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 : 06-08-2025 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) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 10-12- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 of the Act on 31-03- 2022. The Ld. AO assessed the income of the assessee by making addition of Rs.199.59 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