ITO (TDS) Vs SECL (ITAT Raipur)
CIT(A) Has No Power to Remand in 201 Proceedings -SECL’s Multi-Crore TDS Dispute Sent Back- CIT(A) Overstepped Jurisdiction – ITAT Quashes Remand Directions in SECL Appeals
ITAT Raipur dealt with cross appeals by South Eastern Coalfields Ltd. (SECL), a Central Government Mini Ratna PSU, & Revenue, concerning demands raised u/s 201(1) & 201(1A) for non-deduction of TDS on Power & Township Expenses of Rs. 259.67 crore & Grants to Schools & Institutes of Rs. 48.25 crore.
AO had treated SECL as assessee in default for failure to deduct TDS u/s 192 r.w.s. 17 on such expenses & levied huge demands running into several crores across 27 TANs. CIT(A), by order dated 28.02.2025, partly allowed appeals but while adjudicating ground no. 2, he dismissed some sub-grounds while remanding others (2c, 2d, 2e) back to AO for verification.
Before Tribunal, both sides challenged the order. The core issue was whether CIT(A) had jurisdiction to remand any matter when the order under appeal was not framed u/s 144. Tribunal noted that u/s 251(1)(a), prior to amendment by Finance Act 2024, CIT(A) had no power to remand; he was obliged to confirm, reduce, enhance or annul the order. Even after amendment effective 01.10.2024, remand is permissible only where assessment order is framed ex parte u/s 144. Since orders here were passed u/s 201, CIT(A)’s remand directions were beyond jurisdiction.
