ITO Vs Goyum Screw Press (ITAT Chandigarh)
The Chandigarh Bench of the Income Tax Appellate Tribunal dismissed the Revenue’s appeal against the order dated 28.02.2025 for assessment year 2017-18. The Assessing Officer had passed an ex-parte assessment under Sections 144 read with 147 of the Income Tax Act. On appeal, the Commissioner of Income Tax (Appeals), exercising powers under Section 251(1)(a), set aside the matter to the Assessing Officer for fresh adjudication on merits. The Tribunal held that the CIT(A) was empowered to do so where the original order was ex-parte and found no error in the decision. The Revenue’s appeal was therefore dismissed.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
1. The present appeal is directed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 28.02.2025 passed for assessment year 2017-18.
2. With the assistance of ld. Representative, we have gone through the record carefully. It emerges out that AO has passed an ex-parte assessment order u/s 144 read with Section 147 of the Income Tax Act, 1961. On appeal, ld.CIT (Appeals), by exercising his powers u/s 251(1)(a) set aside the issue to the file of AO for fresh adjudication on merit. Since ld. First Appellate Authority has been empowered to set aside an issue to the AO, if impugned order was passed ex-parte, therefore, we do not find any error in the order of the ld.CIT (Appeals). It is well within his jurisdiction to set aside an issue to the file of the AO. Accordingly, this appeal is devoid of any merit, hence dismissed.
