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Facts
The Assessing Officer framed a best judgment assessment under Section 144 read with Section 144B for AY 2021-22 due to the assessee's failure to make effective representation, making various additions. The CIT(A), considering new submissions and evidence from the assessee, exercised remand power under Section 251(1)(a) and directed the AO to conduct a fresh assessment. Aggrieved by this decision, the revenue filed an appeal before the Income Tax Appellate Tribunal.
Held
The Tribunal observed that the original assessment was on a best judgment basis and the assessee submitted fresh evidence during the first appeal, which had a material bearing on the assessment. The Tribunal upheld the CIT(A)'s decision, finding that the remand power was validly exercised under Section 251(1)(a) and found no infirmity in the direction for a fresh assessment.
Key Issues
Whether the CIT(A) validly exercised its remand power under Section 251(1)(a) to direct a fresh assessment, given that the original assessment was a best judgment assessment and the assessee furnished fresh evidence during the first appellate proceedings.
Sections Cited
144, 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: 2021-22) ITO Ward 2(1) Shri Vishal Singh Aaykar Bhawan, Rishi Nagar H.No 6998 St No 2 बनाम/ Vs. Ludhiana.141001 Basti Jodhewal Ludhiana.141001 �थायीलेखासं./जीआइआरसं./PAN/GIR No. ISDPS-5952-L (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Smt. Kusum Bansal (CIT) – Ld. DR ��थ�कीओरसे/Respondent by : Shri Aman Parti (Advocate) – Ld. AR 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) 2021-22 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-12- 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 26-12- 2022. The Ld. AO assessed the income of the assessee by making various additions. 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.