ITAT Remands Matter to Assessing Officer for Re-examination of Income Tax Order Due to Procedural Lapses [Read Order]

In a recent case before the Income Tax Appellate Tribunal ( ITAT ) Ahmedabad Bench, remanded a matter to the Assessing Officer for re-examination, directing the officer to pass an order de novo after affording the assessee an opportunity of being heard.

The assessee, Alkeshbhai Bhogibhai Shah filed an appeal against an order dated 25/06/2024 passed by CIT(A) under Section 250 of the Income Tax Act, 1961, with relevance to the Assessment Year (AY) 2012-13. The appeal was allowed for statistical purposes.

The appeal was allowed as the Assessing Officer failed to furnish a remand report, violating natural justice & remanded the matter back to the AO under Section 250(4) of the act. The CIT(A) had sustained the addition of Rs 22,61,755/-, after which the assessee prayed for the matter to be remanded.

Get a Copy of Methods of Investigations of Books of Accounts and Other Documents, Click here

The Counsel representing the assessee explained that their family had been in the textile business, which had since shut down. The assessee had invested in shares using funds from the current account of his brother's proprietary business. The details of this were submitted to the Assessing Officer, but they were not taken into account. 

When the CIT(A) sent the case back to the AO for review, no remand report was filed. Despite this, the CIT(A) went ahead and issued an order under Section 250 of the act on June 25, 2024, without waiting for the remand report. The assessee's counsel then argued that this was improper and requested that the CIT(A) re-examine the matter. 

The Department's representative (D.R.), however, suggested that the case should go back to the Assessing Officer for a fresh review. Finding this suggestion reasonable, the tribunal decided to send the case to the Assessing Officer for a de-novo review, ensuring the assessee would be given an opportunity to present their case again.

Get a Copy of Methods of Investigations of Books of Accounts and Other Documents, Click here

The Tribunal comprising Dr. BRR Kumar, Vice President, observed that the matter shall be restored to the files of the Assessing Officer for examination and the Assessing Officer shall pass an order after affording an opportunity of being heard to the assessee. Therefore the appeal filed by assessee was allowed for statistical purposes.

The Appellant was represented by  Jaimin Shah, A.R. and the respondent was represented by  Ketan Gajjar.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates