DCIT, CENTRAL CIRCLE,, SRINAGAR vs. SH. JALAL UD DIN KHUROO, SRINAGAR
Facts
The revenue appealed against orders of the CIT(A) which had set aside ex-parte assessment orders passed by the ACIT under sections 153A read with 144 of the Income Tax Act. The CIT(A) remanded the cases to the Assessing Officer for fresh assessment, citing the assessee's non-compliance during original assessment and the powers granted by the amended provisions of section 251(1)(a) of the Act.
Held
The Tribunal upheld the CIT(A)'s decision, affirming that the first appellate authority had judiciously set aside the ex-parte assessment orders for fresh assessment. It noted that the CIT(A) was empowered under section 251(1)(a) to direct a fresh assessment, especially when the original assessment was made ex-parte under section 144 and required affording the assessee a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) erred in setting aside ex-parte assessment orders for fresh assessment without adjudicating on merits, and if the CIT(A) possessed the power under section 251(1)(a) to do so.
Sections Cited
250(6), 153A, 144, 251(1)(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. UDAYAN DASGUPTA & SH. KHETTRA MOHAN ROY
Per Udayan Dasgupta, J.M.:
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.
2 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. 2. Grounds of appeal taken by the revenue are almost identical for all the years
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
3 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. proceedings and by virtue of the amended provisions of section 251(1)(a) of the Act,
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
4 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. a fresh assessment if the appeal is against the order of assessment made u/s 144. In
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.
In ITA Nos. 107 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.
Our observations in ITA No.106/Asr/2025 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.
5 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. 11. In the result, all the appeals filed by the revenue are dismissed being devoid of
merits.
Order pronounced in open court as on 22.08.2025.
Sd/- Sd/- (Khettra Mohan Roy) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order
