Sunita Tuli Vs ITO (ITAT Amritsar)
CIT(A) Cannot Bypass Jurisdictional Grounds by Simple Remand – Legal Issues Must Be Adjudicated
The Amritsar Bench of the ITAT allowed the assessee’s appeal for AY 2015-16 for statistical purposes and set aside the order of the CIT(A), NFAC, holding that the first appellate authority cannot avoid adjudication of jurisdictional and legal grounds by merely setting aside the assessment for fresh consideration. The assessee, a senior citizen and widow, had faced reassessment proceedings under section 147 based on alleged cash deposits of ₹55.89 lakh, whereas the actual deposits aggregated to only ₹49.76 lakh—below the ₹50 lakh threshold prescribed under section 149(1)(b) for extended limitation.
The Tribunal noted that the assessee had specifically raised foundational legal objections, including (i) reassessment being time-barred due to incorrect computation of cash deposits, (ii) mechanical approval under section 151 based on wrong facts, and (iii) invalid notice under section 148 issued by the Jurisdictional AO in violation of CBDT Notification No. 18/2022 mandating faceless reassessment, as upheld by the Punjab & Haryana High Court in Jatinder Singh Bhangu. These grounds went to the root of jurisdiction and required mandatory adjudication by the CIT(A).
Holding that failure to decide such legal grounds amounts to abdication of appellate duty, the ITAT remanded the matter back to the CIT(A) with a direction to adjudicate all jurisdictional and legal grounds on merits after granting due opportunity to the assessee. The appeal was accordingly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF AMRITSAR
This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC, Delhi dated 04.02.2025 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, NFAC, Delhi passed u/s 147 r.w.s. 144 of the Act, 1961 dated 16.03.2023.
