What did the Tribunal hold?

The Tribunal found that the validity of reassessment proceedings was raised but not decided by the CIT(A). Therefore, the matter was restored to the CIT(A) for a fresh decision on the validity of reassessment proceedings and, if valid, on merits.

The assessee objected to the validity of reassessment proceedings before the CIT(A). However, the CIT(A) did not decide this specific aspect in its order. The assessee argued that the matter should be restored for a fresh decision on this point.

What were the issues?

The primary issue was the failure of the CIT(A) to decide on the validity of reassessment proceedings, which was a ground raised by the assessee.

Shri. Kamlesh H Shah(HUF) vs ITO | ITAT Bangalore 2017

Income Tax Appellate Tribunal, SMC, BENCH ‘C’, BANGALORE

For Appellant: Shri H Nagin Khincha, C.A

For Respondent: Shri A.R.V Sreenivasan, JCIT

PER SHRI AK GARODIA, ACCOUNTANT MEMBER :

This appeal is filed by the assessee which is directed against the order of learned Commissioner of Income-tax (Appeals) Bangalore dated 25/5/2016 for assessment years 2006-07.

The grounds raised by the assessee are as under:

It was submitted by the ld AR of the assessee that as per ground No.5 raised before the ld CIT(A), the assessee has objected to the validity of the reassessment proceedings but this aspect of the matter was not decided as per impugned order and therefore, the matter should be restored to the ld CIT(A) for a fresh decision including a decision on this aspect.

Ld DR of the Revenue supported the order of ld CIT(A).

I have considered the rival submissions. I find that the issue of validity of reassessment proceedings was very much raised by the assessee before the ld CIT(A) but this was not decided by the ld CIT(A) as per impugned order and, therefore, I feel it proper to restore back the entire matter to the file of the ld CIT(A) for fresh decision. The ld CIT(A) is directed to decide the issue in respect of validity of reassessment proceedings and if the reassessment proceedings are found to be valid then he should decide the issue on merit also afresh. In view of this decision, no adjudication is called for on merit of addition made by the AO at this stage.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 17th March, 2017.

SHRI. KAMLESH H SHAH(HUF),BANGALORE vs. ITO-WARD-6(2), BANGALORE

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