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Facts
The Revenue appealed against the CIT (A)'s order for AY 2017-18. The Assessing Officer had passed an ex-parte assessment order under Sections 144 read with 147 of the Income Tax Act, 1961. The CIT (A) subsequently set aside this order, remanding the matter back to the AO for fresh adjudication on merits, exercising powers under Section 251(1)(a).
Held
The Tribunal upheld the CIT (A)'s decision, finding no error in the order. It observed that the First Appellate Authority is empowered under Section 251(1)(a) to set aside an ex-parte assessment and remit the issue to the AO for fresh adjudication on merits. Consequently, the Revenue's appeal was dismissed.
Key Issues
Whether the CIT (A) has the jurisdiction and power to set aside an ex-parte assessment order passed under Sections 144 read with 147 and remand the case to the AO for fresh adjudication on merits.
Sections Cited
Section 144 of the Income Tax Act, 1961, Section 147 of the Income Tax Act, 1961, Section 251(1)(a) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year. : 2017-18 The ITO, Vs Goyum Screw Press, Ludhiana. 324/2, Industrial Area-A, Opposite Berger Paints, Millerganj, Ludhiana. �थायी लेखा सं./PAN NO: AAFFG9228H अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Honey Bajaj, Advocate. Revenue by : Shri Vivek Vardhan, Addl. CIT Sr.DR Date of Hearing : 24.11.2025 Date of Pronouncement : 27.01.2026 O R D E R HYBRID HEARING PER RAJ PAL YADAV, VP
The present appeal is directed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 28.02.2025 passed for assessment year 2017-18.
With the assistance of ld. Representative, we have gone through the record carefully. It emerges out that AO has passed an ex-parte assessment order u/s 144 read with Section 147 of the A.Y. 2017-18 2 Income Tax Act, 1961. On appeal, ld.CIT (Appeals), by exercising his powers u/s 251(1)(a) set aside the issue to the file of AO for fresh adjudication on merit. Since ld. First Appellate Authority has been empowered to set aside an issue to the AO, if impugned order was passed ex-parte, therefore, we do not find any error in the order of the ld.CIT (Appeals). It is well within his jurisdiction to set aside an issue to the file of the AO. Accordingly, this appeal is devoid of any merit, hence dismissed.
In the result, appeal of the Revenue is dismissed.
Order pronounced on 27.01.2026.