Failure to Adjudicate Issue u/s 148 of Income Tax Act: ITAT Remands Case to CIT(A) [Read Order]
The ITAT directed the CIT(A) to review the procedural validity and merits of the case, allowing the appeal for statistical purposes and urging the assessee's cooperation
![Failure to Adjudicate Issue u/s 148 of Income Tax Act: ITAT Remands Case to CIT(A) [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/12/ITAT-ITAT-Ahmedabad-Income-Tax-Appellate-Tribunal-Income-Tax-Section-148-of-Income-Tax-Act-taxscan.jpg "Failure to Adjudicate Issue u/s 148 of Income Tax Act: ITAT Remands Case to CIT(A) [Read Order]")
The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case of the assessee to the Commissioner of Income Tax (Appeals) [CIT(A)], for fresh adjudication due to the failure to address the issue under Section 148 of the Income Tax Act, 1961. Kalash Trade Chem Private Limited,appellant-assessee,challenged the order dated 27.06.2024 passed by the CIT(A),National...
The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case of the assessee to the Commissioner of Income Tax (Appeals) [CIT(A)], for fresh adjudication due to the failure to address the issue under Section 148 of the Income Tax Act, 1961.
Kalash Trade Chem Private Limited,appellant-assessee,challenged the order dated 27.06.2024 passed by the CIT(A),National Faceless Appeal Centre ( NFAC ), for the Assessment Year 2013-14.
The assessee raised several grounds, arguing that the CIT(A) upheld an addition of ₹50,74,150 under Section 68 read with Section 115BBE without considering documents submitted on 25/01/2024 and passed an ex-parte order. It was claimed that the notice under Section 148 was time-barred, reasons recorded under Section 147 were vague, and proper show-cause notices were not issued, violating Section 144B.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The reassessment was challenged as illegal due to the absence of a mandatory notice under Section 143(2) and lack of a draft assessment order. The addition under Section 68 was disputed as no credit appeared in the books, and the application of Section 115BBE was contested. Penalty proceedings and interest charged under Sections 234A, 234B, 234C, and 234D were also disputed, asserting no defaults were made.
The two member bench comprising Dr. BRR Kumar ( Vice President ) and Siddhartha Nautiyal ( Judicial Member ) observed that the case was reopened under Section 148, and a notice was issued. The assessee challenged the limitation and service of the notice but did not respond to further notices, leading to an ex-parte order. The CIT(A) failed to address the issue under Section 148 of the Act.
The tribunal remanded the case to the CIT(A) to review the validity of the notice and the merits, instructing the assessee to cooperate and avoid unnecessary delays.
In short, the appeal filed by the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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