Mono Steel (India) Limited Vs DCIT (ITAT Ahmedabad)
CIT(A) Can’t Duck Jurisdictional Issues: Ahmedabad ITAT Orders Fresh Adjudication on 147 Reopening & 144B Violations
Ahmedabad ITAT, Bench ‘B’, in Mono Steel (India) Ltd. Vs DCIT (ITA Nos.1648 & 1620/Ahd/2025; AYs 2015-16 & 2016-17; order dated 18-12-2025), allowed the assessee’s appeals for statistical purposes and set aside the CIT(A)’s orders for failure to adjudicate crucial legal and jurisdictional grounds.
The Tribunal noted that although the CIT(A) had remanded the assessments to the AO on the ground of violation of natural justice, he did not decide the assessee’s legal objections challenging (i) jurisdiction of reopening u/s 147, (ii) non-compliance with mandatory faceless procedure u/s 144B (rendering the order non est u/s 144B(9)), and (iii) improper invocation of best judgment u/s 144, despite these being pure questions of law.
Holding that appellate authority is duty-bound to adjudicate such grounds, the ITAT restored the matters to the CIT(A) with a direction to decide all legal issues afresh, in accordance with law, after granting due opportunity to the assessee. The Tribunal clarified that remand without deciding jurisdictional grounds is impermissible. Consequently, both appeals for AYs 2015-16 & 2016-17 were allowed for statistical purposes, reinforcing that jurisdictional defects must be examined before sending matters back to the AO.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned two appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre (NFAC), Delhi, vide order dated 10.03.2025 and 06.03.2025 for the Assessment Years 2015-16 & 2016-17 respectively. Since the issue involved in these two appeals are common, we extract the grounds of appeal raised in ITA No.1620/Ahd/2025 for AY 2016-17 for the purpose of adjudication.
