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Facts
The revenue filed appeals against the CIT(A)'s order which set aside ex-parte assessment orders passed by the ACIT under Section 153A r.w.s. 144 of the Income Tax Act, 1961. The CIT(A) had directed fresh assessment after affording the assessee a reasonable opportunity of being heard, citing the amended provisions of Section 251(1)(a).
Held
The ITAT upheld the CIT(A)'s decision, agreeing that the CIT(A) has the power under the amended Section 251(1)(a) to set aside ex-parte assessment orders and refer the case back to the AO for fresh assessment when the appeal is against an order made u/s 144. The Tribunal found the CIT(A)'s approach judicious and dismissed the revenue's appeals.
Key Issues
Whether the CIT(A) has the power to set aside ex-parte assessment orders passed under Section 153A r.w.s. 144 and direct fresh assessment under the amended provisions of Section 251(1)(a) of the Income Tax Act.
Sections Cited
250(6), 153A, 144, 251(1)(a)
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. UDAYAN DASGUPTA & SH. KHETTRA MOHAN ROY
All the above fours appeals filed by the revenue against the order of the ld. CIT (A)-5, Ludhiana all dated 27.12.2024 passed u/s 250(6) of the Income Tax Act, 1961 has emanated from the order of the ACIT, Central Circle, Srinagar passed u/s 153A r.w.s. 144 of the Act, 1961 all dated 21.01.2022. and the facts of the case and the issues contained therein are also identical and as such all the four appeals are taken up together for disposal for the sake of convenience.
Grounds of appeal taken by the revenue in Form No. 36 are as follows in ITA No. 106/Asr/2025:
“1. Whether upon facts and circumstances of the case, the ld. CIT(A) has erred in setting aside the order to the file of AO for fresh assessment without giving any reasons and without going into the merits of the assessment order?
The appellant craves leave to add, amend, modify, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of the appeal.”
Brief facts emerging from records are that the appeal has been filed by the assessee before the first appellate authority against the order of the AO u/s 153A r.w.s. 144 of the Act, 1961 passed by the ACIT, Central Circle, Srinagar. During the course of hearing before the first appellate authority, submission has been made by the assessee along with the documentary evidences, against which remand report has been obtained from the AO. It has been observed by the ld. first appellate authority that the proper compliance has not been made by the assessee in course of assessment the ld. first appellate authority thought it fit and proper to set aside the assessment back to the files of the Assessing Officer with a direction to make a fresh assessment order after affording reasonable opportunity of hearing to the assessee.
Now, the revenue has come up in appeal before the Tribunal, challenging the set aside order, passed by the ld. first appellate authority on the grounds contained in the memorandum of appeal in Form No. 36.
In course of hearing, the ld. DR submitted that the first appellate authority has erred in setting aside the order to the files of the AO for fresh assessment without going into the merits of the case and the ld. first appellate authority should have adjudicated on all the issues, more so, when remand report has been obtained from the AO, in response to written submission filed by the assessee. However, the ld. DR could not substantiate as to how the order of the ld. first appellate authority is erroneous or perverse.
It is seen from records that the assessment order has been passed ex-parte u/s 153A r.w.s. 144 in absence of any compliance by the assessee and by virtue of the amended provisions of section 251(1)(a) of the Act, the ld. first appellate authority is empowered to set aside the assessment and refer the case back to the AO for making the instant case, the ld. first appellate authority has rightly concluded that the assessment should be done afresh after affording reasonable opportunity of being heard to the assessee and after considering all documentary evidences and as such, has set-aside the matter back to the files of the AO.
On the facts and circumstances of the case, we are in agreement with the opinion of the ld. first appellate authority who has taken a judicious approach and we find no reason to take any different view in the matter. As such, we uphold the order of the ld. first appellate authority and the appeals of the revenue are dismissed being devoid of merits. to 109/Asr/2025 for the Assessment Years: 2016-17, 2017-18 & 2019-20, all the appeals are factually identical and similar grounds taken by the revenue in respect of all the orders passed ex-parte by the Assessing Officer and the same has been set aside by the ld. first appellate authority for fresh assessment. applies mutatis mutandis to all the aforesaid appeals. As such, we uphold the order of the ld. first appellate authority and were also of the view that the assessment orders passed ex-parte has been judiciously set aside for fresh assessment proceedings. merits.
Order pronounced in open court as on 22.08.2025.