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Facts
The Revenue challenged the CIT(A)'s order dated 01.01.2025, which remanded the assessment back to the Assessing Officer (AO) for adjudication by invoking Section 251(1)(a) of the Income Tax Act, 1961. The original assessment was passed ex-parte under Section 144, involving significant additions for unexplained money and expenditure under Sections 69A and 69C, read with Section 115BBE.
Held
The Tribunal held that the CIT(A)'s decision to remand the case to the AO under Section 251(1)(a) was in conformity with the legal provisions of the Income Tax Act. Therefore, finding no error in the CIT(A)'s order of remand, the appeal filed by the Revenue was dismissed.
Key Issues
Whether the CIT(A) was justified in remanding the case back to the Assessing Officer under Section 251(1)(a) of the Income Tax Act, 1961, given the nature of the original assessment and the additions made.
Sections Cited
251(1), 251(1)(a), 144, 69A, 69C, 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘B’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
आयकर अपील�य अ�धकरण, च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘B’, CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year : 2017-18 ITO, Rippan Dhir, Ludhiana बनाम 247, New Hira Nagar St No. 2, Vs. Kakowal Road, Ludhiana 141008 �थायी लेखा सं./ PAN NO: AGAPD1957D अपीलाथ�/Appellant ��यथ�/Respondent ( PHYSICAL HEARING) �नधा�रती क� ओर से/Assessee by : None राज�व क� ओर से/ Revenue by : Sh. Rajat Kumar Kureel, CIT DR सुनवाई क� तार�ख/Date of Hearing : 05.01.2026 उदघोषणा क� तार�ख/Date of Pronouncement : 19.01.2026 आदेश/Order Per Krinwant Sahay, AM :
Appeal in this case has been filed by the Revenue against the order dated 01.01.2025 passed by the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi.
The grounds raised are as under: -
That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of 298-Chd-2025 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 4 to 5 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 disallowance of Rs.1,65,28,500/- made by the AO on account of unexplained money u/s 69A r.w.s. 115BBE of the Income Tax Act, 1961.
5. That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition disallowance of Rs.14,92,57,500/- made by the AO on account of unexplained expenditure u/s 69C r.w.s. 115BBE of the Income Tax Act, 1961.
6. That, reliance is placed on the judgement of Hon'ble High Court of Gujarat at Ahmedabad
298-Chd-2025 3 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. Further appeal of the assessee (SLP No. 15019/2021) was also dismissed by the Hon'ble Supreme Court vide order dated 26.07.2021.
That the appellant craves leave to add or amend any ground of appeal before it is finally disposed off.
None appeared on behalf of the Assessee.
From the record, we find that in this case, ld. CIT(A) in his order has remanded this case back to the file of the Assessing Officer for invoking the newly inserted provision of section 251(1) of the Income Tax Act, 1961 (in short 'the Act'). It is important to note that the assessment order in this case has been passaged u/s 144 of the Act.
During proceedings before us, the ld. DR relied on the order of the AO.
We have considered the findings given by the authorities below and we find that the action of the Ld. CIT(A) in remanding this case back to the file of the Assessing Officer after invoking the new provision to 298-Chd-2025 4 section 251(1) (a) of the I.T. Act, 1961 is very much in conformity to the legal provision as per the Income Tax Act. Therefore, the appeal of the Revenue against the CIT(A)’s order of remanding it back to the Assessing Officer is justified. Accordingly, appeal filed by the Revenue is dismissed.