Ayush Jindal Vs ITO (ITAT Raipur)
Raipur ITAT: CIT(A) Must Decide Jurisdictional Challenge Before Remanding Reassessment to AO
The Raipur ITAT held that where an assessee specifically challenges the validity of reassessment proceedings, the CIT(A)/NFAC is duty-bound to adjudicate that jurisdictional issue first. The first appellate authority cannot bypass such a legal ground and simply remand the matter to the Assessing Officer for fresh assessment.
In the present case, the Assessing Officer reopened the assessment under sections 147/148 and, due to the assessee’s non-compliance, completed the assessment under sections 147 read with 144 and 144B, determining total income at ₹1.37 crore, comprising additions towards unexplained income, unexplained investment, interest income and estimated professional income. Before the CIT(A)/NFAC, the assessee specifically challenged the legality of the reassessment proceedings. However, instead of deciding that legal issue, the CIT(A) restored the matter to the Assessing Officer for de novo adjudication.
The Tribunal observed that this approach was legally unsustainable. Once a jurisdictional ground questioning the very validity of the reassessment is raised, the appellate authority must first determine that issue before directing any further proceedings. Accordingly, the Tribunal set aside the order of the CIT(A)/NFAC and restored the matter to the first appellate authority with a direction to first adjudicate the legal challenge to the reassessment, after granting the assessee a reasonable opportunity of hearing, and thereafter decide the matter in accordance with law. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT RAIPUR
This appeal filed by the assessee is directed against the order dated 21.10.2025 of the Ld. Commissioner of Income Tax, [CIT(A)] / NFAC, Delhi relating to assessment year 2017-18.
