ACIT, AGRA V. MEERA AGRAWAL, MATHURA

ITA 42/AGR/2025

AI Insights

The case involves appeals by the Revenue against the decisions of the CIT(Appeals) which set aside the assessment orders for the Assessment Years 2017-18 and 2019-20, and referred the matters back to the Assessing Officer. The CIT(Appeals) found that the assessee was not given a reasonable opportunity of hearing, which is a fundamental right under the principles of natural justice. The Revenue contended that the assessee had been provided sufficient opportunities, which were ignored, leading to the assessment orders being passed under section 144 of the Income-tax Act. The Tribunal examined the powers of the CIT(Appeals) post the amendment by the Finance (No. 2) Act, 2024, which allowed the CIT(Appeals) to set aside and refer cases back to the Assessing Officer even when the assessment was made under section 144.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713205 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUKESH KUMAR JAIN
• Assessee Lawyers: ANURAG SINHA
• Keywords: Set aside; Principle of natural justice
• Section: 144; 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.42 & 43/Agr/2025 Assessment Year: 2017-18 & 2019-20 ACIT, Central Circle, Agra. Vs. Meera Agrawal, 22, Jagannath Puri, Mathura (UP) PAN : ADMPA9962C (Appellant) (Respondent) ORDER PER: SUNIL KUMAR SINGH, JUDICIAL MEMBER: These appeals have been preferred by Revenue against the impugned orders both dated 18.11.2024 passed in Appeal no. CIT(A)- IV/KNP/11934/2016-17 and CIT(A)-IV/KNP/11173/2018-19 by the Ld. Commissioner of Income– tax(Appeals)-4, Kanpur [hereinafter referred to as the “CIT(A)”] u/s. 250(6) of the Income-tax Act, 1961 [hereinafter referred to as \"Act\"] for the Assessment Years [A.Y.] 2017-18 and 2019-20, wherein learned CIT(A) after resorting to the recent amendment inserted by Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 in section 251, has set aside the Assessee by Sh. Anurag Sinha, Advocate Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 17.07.2025 Date of pronouncement 30.07.2025 Printed from counselvise.com ITA No. 42 & 43/Agr/2025 2 | P a g e assessment orders dated 28.06.2021 and 30.07.2021 and referred the cases back to the Assessing Officer for making a fresh assessment orders after providing reasonable opportunity to the assessee in accordance with the principles of natural justice. 2. Revenue has preferred these appeals against the assessee on the ground that ld. CIT(Appeals) has erred in setting aside the assessment orders and referring the cases back to the Assessing Officer for fresh assessment, ignoring the fact that the assessee had been provided sufficient opportunities of hearing by the Assessing Officer. Revenue has further mentioned that the failure on the part of the assessee in responding to the statutory notices without any reasonable ground has resulted in passing such assessment orders u/s. 144 of the Act. 4. We have perused the records and heard the ld. Departmental Representative for the Revenue and ld. Authorized Representative for the assessee. 5. The small issue involved in these appeals is as to whether ld. CIT(Appeals) is empowered to remand the matter back to the Assessing Officer in a case when the assessment order is passed u/s. 144 of the Act. Ld. DR has not disputed that the Finance (No.2) Act, 2024 has empowered ld. CIT(Appeals) w.e.f. from the said amendment, i.e., from 01.10.2024 that Printed from counselvise.com ITA No. 42 & 43/Agr/2025 3 | P a g e the first appellate authority may set aside the assessment order and is also empowered to refer the case back to the Assessing Officer for making fresh assessment in case of an appeal against the order of assessment passed u/s. 144 of the Act. It is also not disputed that the said assessment orders have been passed u/s. 144 read with section 153A of the Act. A perusal of the impugned orders reveal that the ld. CIT(Appeals) has categorically found that the assessee was not afforded reasonable opportunity of hearing in the assessment proceedings. We, therefore, do not deem it just and proper to interfere in the wisdom of ld. CIT(Appeals) in referring the case to the Assessing Officer back, more so when the first appellat authority has made such orders after concluding that the principles of natural justice have not been complied with. The said issue is accordingly decided against the appellant/Revenue. 6. In the result, Revenue’s both the appeals are dismissed. Order pronounced in the open court on 30.07.2025. Sd/- Sd/- (BRAJESH KUMAR SINGH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.07.2025. *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "