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Facts
The Assessing Officer framed assessments for AY 2014-15 and 2015-16 under Section 147 read with Section 144, making an addition of Rs. 360.17 Lacs, as the assessee failed to represent. The CIT(A) subsequently exercised remand power under Section 251(1)(a), directing the AO to make fresh assessments. The revenue, aggrieved by the CIT(A)'s remand order, filed appeals before the Income Tax Appellate Tribunal.
Held
The Tribunal observed that the original assessments were framed on a best judgment basis. Given the assessee's submissions and new evidence presented during the first appeal, which had material bearing, the CIT(A) validly exercised its power of remand by directing the AO to conduct fresh assessments. The Tribunal found no infirmity in the CIT(A)'s decision.
Key Issues
Whether the CIT(A) validly exercised its power of remand under Section 251(1)(a) to direct fresh assessments when the original assessments were best judgment assessments and the assessee presented new evidence during the first appeal.
Sections Cited
147, 144, 251(1)(a)
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Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रण वष� / Assessment Year: 2014-15 & 2. आयकर अपील सं./ (िनधा�रण वष� / Assessment Year: 2015-16 Income Tax Officer K P EXIM INC बनाम/ Vs. Rishi Nagar Main Bahadur KE Road Ludhiana.141001. Ludhiana – 141 001 �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAKFK-2926-M (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Manav Bansal (CIT) a/w Shri Shri Vivek Vardhan (Addl. CIT) – Ld. DRs ��थ�कीओरसे/Respondent by : Shri Y.K. Saxena ( Advocate) – Ld. AR सुनवाईकीतारीख/Date of Hearing : 18-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by revenue have identical facts. In AY 2014-15, Ld. AO has framed an assessment u/s 147 r.w.s. 144 of the Act on 26- 03-2022 making addition of Rs.360.17 Lacs. The assessee failed to make any representation during assessment proceedings. Considering this fact, Ld. CIT(A) exercised remand power in terms of proviso to Sec.251(1)(a) and directed Ld. AO to make fresh assessment. Similar directions have been given in AY 2015-16. So aggrieved, the revenue is in further appeals before us.
We are of the considered opinion that the assessment was framed on best judgment basis for both the years. Considering assessee’s submissions / evidences during first appeal which would have material bearing on the assessment of the assessee, Ld. AO was directed to make fresh assessments. 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.
Both the appeals stands dismissed. Order pronounced on 18-08-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT 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