ITO Vs Dudh Sakhar US Vahtuk Nagari Sahakari Patsanstha Maryadit (ITAT Pune)
Remand powers of CIT(A) are restricted only to best-judgment assessments & CIT(A) Cannot Remand 147/144B Assessments
Assessee, a co-operative credit society, was subjected to reassessment proceedings for AY 2018-19. The reassessment order was passed u/s 147 r.w.s. 144B, making certain additions. Aggrieved, assessee carried the matter in appeal before CIT(A).
CIT(A), in an elaborate order, did not adjudicate the issues on merits. Instead, it set aside the assessment & remanded the matter back to AO for fresh examination, citing the amendment introduced by the Finance Act, 2024, which expanded the powers of CIT(A) u/s 251(1)(a).
Revenue challenged this remand before ITAT. Its argument was straightforward- the power to remand u/s 251(1)(a), post-amendment, is available only in respect of assessments made u/s 144 (best-judgment/ex parte assessments). The impugned order, however, was passed u/s 147 r.w.s. 144B (reassessment through faceless mechanism). Therefore, CIT(A) had no jurisdiction to remand such a matter & was duty-bound to decide the appeal on merits by way of a speaking order u/s 250(6).
Tribunal noted that powers have been given to CIT(A) to refer the case back to the Assessing Officer for making afresh assessment if the assessment order is passed u/s.144 . However, in the instant case, the assessment order has been passed u/s.147 r.w.s.144B & therefore CIT(A) was not having the powers u/s.251 of the Act for restoring the assessment order framed u/s.147 r.w.s.144B to the file of AO for afresh assessment & he was bound to deal with merits of the case & pass a speaking order as contemplated u/s.250(6)
