SANYA DHANANI,INDORE vs. INCOME TAX OFFICER 1(4), INDORE
Facts
The assessee's income for AY 2015-16 was assessed under Section 147 rws 144/144B, with a significant addition of Rs. 1,99,15,600/- under Section 56(2)(vii)(C). The CIT(A) subsequently set aside this assessment and remanded the case to the AO for de novo factual verification. The assessee filed a second appeal before the ITAT challenging this remand order, raising grounds regarding the approval of competent authority for reassessment.
Held
The ITAT upheld the CIT(A)'s order, finding no infirmity in the remand of the case back to the AO under Section 251 for extensive factual verification. The Tribunal directed the assessee to cooperate with the AO and present all relevant information and evidence during the fresh proceedings, allowing the AO to pass a reasoned order on merits.
Key Issues
1. Whether the CIT(A) was justified in remanding the assessment order to the AO for de novo verification under Section 251. 2. Whether the reassessment proceedings were bad in law due to a lack of approval from the competent authority.
Sections Cited
Section 253, Section 250, Section 147, Section 144, Section 144B, Section 148, Section 56(2)(vii)(C), Section 246A, Section 251, Rule 11 of ITAT Rules 1963
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M JOSHI
Per Paresh M Joshi, J.M.:
This is an Appeal filed by the Assessee under section 253 of
the income tax Act 1961,[ herein after referred to as the Act
for sake of brevity] before this tribunal as and by way of a
second appeal. The Assessee is aggrieved by the order
bearing no: - ITBA/NFAC/S/250/2024-25/1071520687(1)
dated 24.12.2024 passed by the Ld. CIT (A) u/s 250 of the
Act, which is herein after referred to as the “Impugned
order”. The Relevant Assessment year is 2015-16 and the
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corresponding previous year period is from 01.04.2014 to
31.03.2015.
Factual Matrix
2.1 That as and by way of an Assessment order made u/s
147 rws 144/144B of the Act, the total income of the
Assessee was computed & assessed at Rs. 2,01,08,920/-.
The total income as per the ROI was at Rs. 1, 93,320/- [filed
u/s 148 of the act which was unverified or invalid Para 2 of
assessment order]. The addition/ variation of Rs.
1,99,15,600/- was made as income from other sources u/s
56(2) (vii)( C). That the aforesaid assessment order bears no:
- ITBA/AST/S/147/2021-22/1040214751(1) and that the
same is dated 01.03.2022 which is hereinafter referred to as
the “impugned assessment order”.
2.2 That the assessee being aggrieved by the aforesaid
“impugned assessment order” prefers the first appeal u/s
246A of the act before the Ld. CIT(A) who by the “impugned
order” has set aside the “impugned assessment order” and
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has remanded the matter back to the file of Ld. AO for
extensive factual verification on De novo basis. [S251]
2.3 That the assessee being aggrieved by the “impugned order”
has preferred the instant second appeal before this tribunal and
has raised following grounds of appeal in the form no:-36 against
the “impugned order” which are as under:-
“1.That the Id. AO and Id. CIT(A) failed to consider the fact that approval of competent authority is not taken on records. 2. That the reassessment proceedings are bad in law and is framed without approval of competent authority. 3.That the appellant craves leave to alter, amend, delete or add any ground/s of appeal.”
Record of Hearing
3.1 The hearing in the matter took place before this Tribunal
on 17.02.2026 when the Ld. AR for & on behalf of the
Assessee appeared before us & interalia contended that the
“Impugned Order” is bad in law, illegal & not Proper in view
of grounds of appeal taken up before this tribunal. It was
submitted that the “impugned assessment order” is u/s
144 of the act and that Ld. CIT (A) by the impugned order
has remanded the case back to the file of Ld. AO. It was
submitted that assessee has now raised few additional
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grounds vide P.B. filed on 22.12.2025 and an application u/s
11 of the ITAT rules 1963 filed on 22.12.2025 which should
be admitted and adjudicated by this tribunal. Per contra the
Ld. DR appearing for and on behalf of the revenue submitted
that Ld. CIT(A) by passing the impugned order has rightly
exercised his power u/s 251 of remand back to the file of Ld.
AO and there are no glaring infirmities in the “impugned
order” which warrants an intervention by this tribunal. The
Ld. DR submitted to this tribunal that all issues will now be
looked into afresh by Ld. AO.
Observations Findings & conclusions
4.1 We have to decide the legality, validity and proprietary of the
“impugned order” basis records of the case & the rival
submission canvassed before us.
4.2 We have carefully perused the records of the case and have
heard the submissions.
4.3 We basis records of the case & after hearing & upon
examining the rival contentions of the Ld. AR & the Ld. DR
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canvassed before us are of the considered opinion that the
“impugned order” has rightly remanded the case back to
the file of the Ld. AO [section 251]. We find no infirmities in
it. We observe that while the “impugned assessment order”
is u/s 144 of the act on one hand and on the other hand
there is an “impugned order” of Ld. CIT (A) remanding the
case back to the file of Ld. AO in exercise of new powers
conferred upon him of remand w.e.f. 01.10.2024 as section
251 is amended, there is an application for additional
grounds with a paper book in support. The assessee wants
and desires a legal ground be examined by us under these
facts and circumstances.
4.4 In these peculiar facts and circumstances of the case we
are of the considered opinion that it would be just, fair and
convenient that all issues be examined afresh by Ld. AO in
the De novo proceedings. The assessee is at liberty to raise
all grounds and set up such defences as they deem fit before
Ld. AO. The assessee is also directed to file all the material
information, evidences, details, documents etc. which the Ld.
AO may desire within time as fixed by Ld. AO. The assessee
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is directed to cooperate with the dept. and to do all
necessary compliances before AO in a time bound manner.
The assessee is also directed to not to take any adjournment
on any flimsy grounds. The Ld. AO is directed to a pass a
reasoned order on merits.
4.5 In the premises drawn up by us we upheld the impugned
order of Ld. CIT (A) and sustain the impugned order which
has directed remand of the case back to the file of Ld. AO.
We see no grounds to interfere with the impugned order of
remand back to the file of Ld. AO.
5 Order
5.1 In the result the “Impugned order” is upheld as the same
has set aside the “impugned assessment order” and has
remanded the matter back to the file of Ld. AO on De novo basis
to do extensive factual verification on De novo basis.
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5.2 The appeal is rejected. Subject to above terms laid down by
us as aforesaid.
Pronounced in open court on 27.02.2026.
Sd/- Sd/-
(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER
Indore Dated : 27/02/2026 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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