Loading judgment…
Facts
Revenue preferred these appeals against the assessee, challenging the CIT(A)'s decision to set aside assessment orders and refer the cases back to the AO for fresh assessment. The CIT(A) found that the assessee was not afforded a reasonable opportunity of hearing. The appeals involved assessment orders passed under Section 144 read with Section 153A of the Act.
Held
The Tribunal held that the recent amendment by the Finance (No. 2) Act, 2024, empowers the CIT(A) to set aside assessment orders and refer cases back to the AO, even when the original assessment order was passed under Section 144 of the Act. The Tribunal found no reason to interfere with the CIT(A)'s decision, especially since principles of natural justice were not complied with.
Key Issues
Whether the CIT(Appeals) is empowered to remand the matter back to the Assessing Officer when the assessment order is passed under Section 144 of the Act, considering the recent amendment by the Finance (No. 2) Act, 2024.
Sections Cited
250(6), 251, 144, 153A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
ORDER PER: SUNIL KUMAR SINGH, JUDICIAL MEMBER:
These appeals have been preferred by Revenue against the impugned orders both dated 18.11.2024 passed in Appeal no. CIT(A)- IV/KNP/11934/2016-17 and CIT(A)-IV/KNP/11173/2018-19 by the Ld.
Commissioner of Income– tax(Appeals)-4, Kanpur [hereinafter referred to as the “CIT(A)”] u/s. 250(6) of the Income-tax Act, 1961 [hereinafter referred to as "Act"] for the Assessment Years [A.Y.] 2017-18 and 2019-20, wherein learned CIT(A) after resorting to the recent amendment inserted by Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 in section 251, has set aside the assessment orders dated 28.06.2021 and 30.07.2021 and referred the cases back to the Assessing Officer for making a fresh assessment orders after providing reasonable opportunity to the assessee in accordance with the principles of natural justice.
Revenue has preferred these appeals against the assessee on the ground that ld. CIT(Appeals) has erred in setting aside the assessment orders and referring the cases back to the Assessing Officer for fresh assessment, ignoring the fact that the assessee had been provided sufficient opportunities of hearing by the Assessing Officer. Revenue has further mentioned that the failure on the part of the assessee in responding to the statutory notices without any reasonable ground has resulted in passing such assessment orders u/s. 144 of the Act.
We have perused the records and heard the ld. Departmental Representative for the Revenue and ld. Authorized Representative for the assessee.
The small issue involved in these appeals is as to whether ld. CIT(Appeals) is empowered to remand the matter back to the Assessing Officer in a case when the assessment order is passed u/s. 144 of the Act.
Ld. DR has not disputed that the Finance (No.2) Act, 2024 has empowered ld. CIT(Appeals) w.e.f. from the said amendment, i.e., from 01.10.2024 that 2 | P a g e the first appellate authority may set aside the assessment order and is also empowered to refer the case back to the Assessing Officer for making fresh assessment in case of an appeal against the order of assessment passed u/s. 144 of the Act. It is also not disputed that the said assessment orders have been passed u/s. 144 read with section 153A of the Act. A perusal of the impugned orders reveal that the ld. CIT(Appeals) has categorically found that the assessee was not afforded reasonable opportunity of hearing in the assessment proceedings. We, therefore, do not deem it just and proper to interfere in the wisdom of ld. CIT(Appeals) in referring the case to the Assessing Officer back, more so when the first appellat authority has made such orders after concluding that the principles of natural justice have not been complied with. The said issue is accordingly decided against the appellant/Revenue.
In the result, Revenue’s both the appeals are dismissed.
Order pronounced in the open court on 30.07.2025.