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Facts
The Assessing Officer (AO) made an addition of Rs. 26,54,06,000/- as unexplained investment in shares under section 69 r.w.s. 115BBE of the Income Tax Act, 1961, due to the assessee's non-compliance and failure to furnish explanations during assessment proceedings. This assessment was completed ex-parte under section 147 read with section 144 of the Act. The CIT(A) subsequently set aside the assessment and remanded the matter to the AO for a fresh assessment, citing the proviso to section 251(1)(a) of the Income Tax Act.
Held
The Tribunal upheld the decision of the CIT(A) to set aside the ex-parte assessment and remand the case for a fresh assessment. It noted that the CIT(A) acted within its statutory powers conferred by the proviso to section 251(1)(a) of the Act, which explicitly allows for such remand in cases of assessments made under section 144. The Tribunal found no infirmity in the CIT(A)'s order, emphasizing that the legislative intent of the proviso is to ensure assessments are framed on merits after affording due opportunity to the assessee.
Key Issues
Whether the CIT(A) was justified in setting aside an ex-parte assessment and remanding the case for fresh assessment to the AO under the proviso to section 251(1)(a) of the Income Tax Act, 1961, instead of deciding the appeal on merits.
Sections Cited
69, 115BBE, 147, 144, 148, 142(1), 251(1)(a)
AI-generated summary — verify with the full judgment below
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE "ी लिलत कुमार, "ाियक सद" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM &SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ 2025 िनधा"रण वष" / Assessment Year : 2015-16 The ITO बनाम Rohit Gupta Khanna Prop. R.R. Industries , GTB Market Khanna "ायी लेखा सं./PAN NO: AAZPG5572C अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : None राज"की ओर से/ Revenue by : Shri Rajat Kumar Kureel, CIT, DR सुनवाई की तारीख/Date of Hearing : 07/01/2026 उदघोषणा की तारीख/Date of Pronouncement : 08/01/2026 आदेश/Order PER LALIET KUMAR, J.M:
This is an appeal filed by the Revenue against the order of the Ld. CIT(A)/NFAC, Delhi dt. 16/04/2025 pertaining to Assessment Year 2015-16.
In the present appeal Revenue has raised the following grounds:
1. 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, without going into and discussing the merits of the case that Assessing Officer had given various opportunities to file the reply to the assessee. 2) That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition of Rs.26,54,06,000/- made by the AO being unexplained investment in shares u/s 69 r.w.s. 115BBE of the Income Tax Act, 1961 as the assessee had failed to furnish any explanation on this issue during the course of assessment proceedings. 3) That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition of Rs. 26,54,06,000/- made by the AO being unexplained investment in shares, as the assessee had failed to furnish satisfactory explanation on this issue during the course of assessment proceedings. 4) 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. Further appeal of the assessee
2. (SLP No. 15019/2021) was also dismissed by the Hon'ble Supreme Court vide order dated 26.07.2021. 5) That the appellant craves leave to add or amend any ground of appeal before it is finally disposed of.