Alex Puthenchira Johnson Vs DCIT (ITAT Bangalore)
Assessee challenged NFAC order where CIT(A) set aside reassessment orders & restored matters to AO for de-novo adjudication relating to additions u/s 2(22)(e) (deemed dividend). Assessment orders were passed u/s 143(3) r.w.s 147 & not u/s 144.
ITAT held that powers of CIT(A) u/s 251 to set aside assessment & remand to AO are restricted. Such power exists only where assessment is framed u/s 144 (as per amended provisions). Since impugned assessments were not u/s 144, CIT(A) exceeded jurisdiction by remanding matter. CIT(A) is duty-bound to adjudicate issues on merits instead of restoring to AO.
Accordingly, ITAT set aside CIT(A) orders & restored appeals back to CIT(A) with direction to decide issues on merits. Appeals allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
ITA No. 1590 and 1592/Bangalore/2025 for assessment year 2013 – 14 and 2015 – 16 is directed against the order passed by the National faceless appeal Centre (NFAC), Delhi [The Learned CIT – A ] dated 3 June 2025 and 23 May 2025 respectively by Alex Puthenchira Jhonson (the assessee/appellant) wherein the appeal filed by the assessee against the reassessment order passed under section 147 read with section 144 read with section 144B of The Income Tax Act, 1961 (The Act) dated 28 March 2022 and 22nd may 2023 respectively passed by the Assessment Unit, Income Tax Department (The Learned AO), by which the learned CIT – A set aside the assessment orders directing him to pass a fresh assessment order.
