ITO Vs S.D. Marketing Co. (ITAT Chandigarh)
ITAT Chandigarh Upholds CIT(A)’s Power to Set Aside Ex-Parte Assessment – Revenue’s Appeal Dismissed
ITAT Chandigarh Upholds CIT(A)’s Power to Set Aside Ex-Parte Assessment – Revenue’s Appeal Dismissed AO had completed assessment ex parte. CIT(A), noticing absence of proper enquiry, exercised powers u/s 251(1)(a) as amended w.e.f. 01.04.2023 & set aside assessment for fresh adjudication. Revenue challenged this action, arguing that CIT(A) erred in remanding matter.
Tribunal observed that post 01.04.2023, CIT(A) is statutorily empowered to set aside assessments & remit issues back to AO. Since assessment order in present case was admittedly passed ex parte & CIT(A) found need for re-examination of issues, his action was justified. Tribunal found no infirmity in CIT(A)’s order. Accordingly, appeal of Revenue was dismissed.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
The present appeal is directed at the instance of the Revenue against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 05.11.2024 passed for assessment year 2011-12.
2. The Revenue has taken eleven grounds of appeal, out of which qua Ground No. 10, it has been pleaded that ld. CIT (Appeals) has erred in setting aside the assessment order for fresh enquiry and re-adjudication. In response to the notice of hearing, no one has come present on behalf of asses see.
