INCOME TAX OFFICER, LUDHIANA vs. SUSHMA GOYAL, LUDHIANA

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ITA 15/CHANDI/2025Status: DisposedITAT Chandigarh12 August 2025AY 2013-14Bench: SHRI RAJPAL YADAV (Vice President), SHRI KRINWANT SAHAY (Accountant Member)4 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal affirmed the CIT(A)'s decision to set aside the assessment order, which was originally passed under Section 144, back to the AO. The Tribunal noted that the CIT(A)'s action was justified under the newly inserted sub-section to Section 251, effective from October 1, 2024, which specifically permits such a remand for orders made under Section 144.

What were the facts?

The Revenue appealed against the CIT(A)'s order which set aside the assessment order, passed under Section 144 and involving an addition of Rs. 3.56 Crores under Section 69A, back to the Assessing Officer. The CIT(A) invoked a newly inserted proviso to Section 251(1)(a) for this remand.

What were the issues?

The core issue was the legality of the CIT(A)'s decision to set aside an assessment order, made under Section 144, back to the Assessing Officer by invoking the newly inserted proviso to Section 251(1)(a) of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 251,Section 251(1)(a),Section 69A,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘B’, CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY

Hearing: 11.08.2025Pronounced: 12.08.2025

Per Krinwant Sahay, AM: Appeal in this case has been filed by the Revenue against the order dated 20.11.2024 of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi.

2.

Grounds of appeal are as under: -

1.

1. 1. That the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of 15-Chd-2054 Sushma Goyal, Ludhiana 2 the assessee and setting aside the matter to the file of AO, without going into and discussing the merits of the case that Assessing Officer had given several opportunities to file the reply to the assessee 2. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of the assessee and setting aside the matter to the file of AO, for adjudication without taking into consideration whether there were justifiable grounds for making total non- compliance by the assessee before the CIT(A) as well as AO.

3. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of the assessee, and setting aside the assessment order back to the file of the A.O after merely provoking the newly inserted provision 251(1)(a) to section 251 of the Income Tax Act. 1961.

4. That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition of Rs. 3,56,27,000/- made by the AO being unexplained money u/s 69A of the Income Tax Act. 1961 and the assessee had failed to furnish any explanation on this issue during the course of assessment proceedings.

5. That, reliance is placed on the judgement of Hon'ble High Court of Gujarat at Ahmedabad in the case of Principal Commissioner of Income Tax-3, Vs. Ashokji Chanduji Thakor dated 27.06.2018 wherein the order passed by the Hon'ble ITAT was quashed & order of AO/CIT(A) were restored.

15-Chd-2054 Sushma Goyal, Ludhiana 3 6. That the appellant craves leave to add or amend any ground of appeal before it is finally disposed.

3.

Although the Revenue has taken six grounds of appeal in this case but the main issue involved is the action of the Ld. CIT(A) in allowing the appeal of the Assessee and setting aside the assessment order back to the file of the Assessing Officer after invoking the newly inserted proviso to section 251(1)(a) of the Income Tax Act, 1961 (in short 'the Act').

4. During proceedings before us, the ld. DR submitted that instead of deciding the appeal on merit, the CIT(A) has remanded it back to the file of the AO.

5. We have seen the order of the Ld. CIT(A) which was passed by him on 20.11.2024. We find that there is an amendment to section 251 of the Act in the year 2024 w.e.f 1.10.2024 which says as under:

“251. (1) In disposing of an appeal, the Commissioner (Appeals) shall have the following powers- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment

15-Chd-2054 Sushma Goyal, Ludhiana 4 [Provided that where such appeal is against an order of made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment).

6.

We find that the assessment order was passed by the Assessing Officer u/s 144, therefore, the appellate order passed on 14.11.2024 is very much covered under the new sub section inserted in section 251 w.e.f 1.10.2024. Accordingly, we find that the action of the Ld. CIT(A) is very much justified. Thus, the Revenue’s appeal on this issue is dismissed.

7.

In the result, Revenue’s appeal is dismissed.

Order pronounced on 12.08.2025.

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