ITO Vs Rippan Dhir (ITAT Chandigarh)
The Chandigarh Bench of the Income Tax Appellate Tribunal Chandigarh adjudicated a Revenue appeal challenging the power of the Commissioner of Income Tax (Appeals), NFAC, to remand a case to the Assessing Officer by invoking the newly inserted provision of section 251(1)(a) of the Income-tax Act, 1961. The Revenue contended that the CIT(A) erred in setting aside the assessment without examining the merits, despite multiple opportunities allegedly granted to the assessee, and argued that large additions made under sections 69A and 69C read with section 115BBE ought to have been sustained. Reliance was also placed on earlier judicial precedent to question the remand.
The Tribunal noted that the assessment in the present case had been framed under section 144 and that the CIT(A) had exercised powers expressly conferred under the amended section 251(1)(a). After examining the statutory framework, the Tribunal held that the action of the CIT(A) in remanding the matter to the Assessing Officer for fresh adjudication was fully in conformity with the law. It found no infirmity in the exercise of such remand powers merely because the assessment involved substantial additions or alleged non-compliance. Accordingly, the Tribunal rejected the Revenue’s objections and upheld the remand order passed by the CIT(A). The appeal filed by the Revenue was dismissed.
