Adjudication of Income Tax Appeal by CIT(A) w/o waiting for Remand Report from AO: ITAT Remands Matter
The observation was made by ITAT while discerning a matter regarding the admission of additional evidences under Rule 46A of the Income Tax Rules, 1962
The Income Tax Appellate Tribunal ( ITAT ), Visakhapatnam recently remanded a case arising from the decision of the Commissioner of Income Taxes (Appeals), National Faceless Appeal Centre, Delhi ( CIT(A) ) in light of the failure of CIT(A) to wait for the Remand Report from the Assessing Officer before passing an Order. Three Income Tax Appeals pertaining to the same subject matter were...
The Income Tax Appellate Tribunal ( ITAT ), Visakhapatnam recently remanded a case arising from the decision of the Commissioner of Income Taxes (Appeals), National Faceless Appeal Centre, Delhi ( CIT(A) ) in light of the failure of CIT(A) to wait for the Remand Report from the Assessing Officer before passing an Order.
Three Income Tax Appeals pertaining to the same subject matter were filed against the Assistant Commissioner of Income Taxes -Circle 2(1) by the Assessee, Ace Urban Developers Private Limited, a developer of smart urban infrastructure aimed at ensuring sustainability, eco-friendly practices and resource optimization.
The Returns of Income filed by the Assessee for the Assessment Year (A.Y.) 2016-17, admitting a total loss of Rs.1,48,76,020/- was selected for complete scrutiny by the Revenue Department. Following assessment under Section 143(3) of the Income Tax Act, 1961, the Assessing Officer (AO) made a number of additions which were set aside by the Principal Commissioner of Income Taxes, Vijayawada advising denovo assessment with specific directions.
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Subsequent to unearthing of evidence by the AO during denovo assessment, an amount of Rs.1,06,27,000/- as outstanding unsecured loan payable by the Assessee to a Ch. Anil Kumar was finalized. The above amount was classified by the AO as ‘unexplained income’ under Section 68 of the Income Tax Act, 1961 - the addition was appealed by the Assessee before the CIT(A) who dismissed the Appeal and upheld the addition.
The Present Appeal has been lodged alleging the failure of CIT(A) to call for the Remand Report prepared by the concerned AO before passing an Order.
The two-member Bench of the Income Tax Appellate Tribunal, Visakhapatnam constituted by Duvvuru RL Reddy, Judicial Member and S Balakrishnan, Accountant Member observed that the CIT(A) in its judgment had noted the lack of remand report on the file of the AO, but had proceeded to pass an Order without waiting/calling for the Remand Report from the AO.
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In light of the procedural irregularity, ITAT remanded the case back to the file of the CIT(A) advising meritorious adjudication while directing the CIT(A) to call for the concerned Remand Report from the AO.
To Read the full text of the Order CLICK HERE
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