Failure to Adjudicate AO’s Jurisdictional Grounds: ITAT Remands Matter to CIT(A) [Read Order]
The Tribunal held that the CIT(A) erred in not adjudicating jurisdictional grounds raised by the assessee regarding the validity of assessment proceedings.
![Failure to Adjudicate AO’s Jurisdictional Grounds: ITAT Remands Matter to CIT(A) [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/ITAT-Adjudication.jpg "Failure to Adjudicate AO’s Jurisdictional Grounds: ITAT Remands Matter to CIT(A) [Read Order]")
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter to the CIT(A) for fresh adjudication after observing that the CIT(A) failed to address the preliminary jurisdictional objections raised by the assessee against the assessment proceedings. Ashta Vinayak Estate (assessee) is a firm which has filed return of income declaring total income of Rs. 1,22,97,810....
The Raipur Bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter to the CIT(A) for fresh adjudication after observing that the CIT(A) failed to address the preliminary jurisdictional objections raised by the assessee against the assessment proceedings.
Ashta Vinayak Estate (assessee) is a firm which has filed return of income declaring total income of Rs. 1,22,97,810. The Assessing Officer (AO) issued notices seeking details of sales & purchases of lands and to substantiate short-term capital gain.
The assessee did not respond to the notices and therefore the AO made additions of Rs. 66,66,000 and Rs. 10,81,74,000 on account of undisclosed investment and short term capital gain respectively.
Aggrieved by the order of AO, the assessee filed an appeal before the Commissioner of Income Tax (appeals) [CIT(A)]. The CIT(A) accepted the submissions of the assessee and set aside the order of AO. However the CIT(A) failed to adjudicate on jurisdictional issues.
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The assessee had challenged the validity of the reassessment proceedings initiated under Section 147 of the Income Tax Act, contending that the Assessing Officer (AO) lacked valid jurisdiction to reopen the assessment. However, the CIT(A) dismissed the appeal without recording any finding on this issue.
Aggrieved by the non-adjudication of jurisdictional issue, the assessee filed an appeal before the ITAT. The counsel for the assessee contended that the CIT(A) was duty-bound to decide the jurisdictional issue first, as the assessment order was passed in violation of mandatory provisions of law.
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The two-member bench comprising Arun Khodpia (Vice President) and Ravish Sood (Judicial Member) observed that the CIT(A) had only discussed the matter on merits and restored the matter of the AO and not adjudicated the jurisdictional issue.
The tribunal held that it was the duty of CIT(A) to decide all the issues raised by the assessee during appellate proceedings.
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The tribunal set aside the order passed by the CIT(A) and remanded the matter for fresh adjudication. The tribunal directed the CIT(A) to decide the jurisdictional issue raised by the assessee in accordance with law after providing a reasonable opportunity of being heard. The appeal of the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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