CIT(A) Records Incorrect Facts and Findings: ITAT Remands Matter for Fresh Adjudication [Read Order]

The Bangalore Bench of Income Tax Appellate Authority ( ITAT ) remanded the matter back to the Commissioner of Income Tax (Appeals) for fresh adjudication due to incorrect facts and findings recorded in the CIT(A)’s order.

Raythara Sahakari Sangha Ltd., the assessee filed its income tax return for the assessment years 2018-19 and 2020-21. The assessing officer ( AO ) disallowed deductions of Rs.68,16,732 claimed under Section 80P of the Income Tax Act and added Rs. 93,01,770 as unexplained investments to the assessee’s total income.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The assessee challenged the AO’s order before the Commissioner of Income Tax (Appeals) CIT(A) but the assessee’s appeal was dismissed.

Aggrieved by the CIT(A) order, the assessee appealed before the Banglore Bench of ITAT arguing that the facts and findings recorded by the Commissioner of Income Tax (Appeals) CIT(A) were inconsistent with the assessment order and prayed to remand the matter back to the CIT(A) for fresh adjudication.

On the contrary, the revenue's counsel could not effectively prove the assessee's claim regarding the discrepancies in the Commissioner of Income Tax (Appeals) CIT(A)'s order.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The two-member bench comprising  Waseem Ahmed ( Accountant Member ) and Soundararajan K ( Judicial Member ) observed that the Commissioner of Income Tax (Appeals) CIT(A)'s order contained findings and facts that were not consistent with the actual assessment order.

The tribunal noted that the facts and contentions presented by the assessee were valid. The tribunal found it was proper and just to remand the matter back to the Commissioner of Income Tax (Appeals) CIT(A) for fresh adjudication.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The tribunal directed the assessee to prepare and submit the relevant materials for fresh consideration before the Commissioner of Income Tax (Appeals) CIT(A).

The tribunal allowed the appeal of the assessee for statistical purposes.

To Read the full text of the Order CLICK HERE

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