ACIT, AGRA V. SANJEEV AGARWAL, AGRA

ITA 47/AGR/2025

AI Insights

The case involves appeals by the Revenue against the orders of the Commissioner of Income-tax (Appeals) - 4, Kanpur, which pertained to the assessment years 2013-14 and 2014-15. The appeals were directed against the CIT(A)'s decision to set aside the assessment orders passed under sections 153A/144 of the Income-tax Act, 1961, and to refer the cases back to the Assessing Officer for a fresh assessment. The CIT(A) had invoked the recent amendment to section 251 of the Act, which empowered the first appellate authority to set aside the assessment order and refer the case back to the Assessing Officer, particularly in cases where the assessment was made under section 144 without adequate opportunity of hearing being provided to the assessee. The Tribunal found that the CIT(A) had correctly identified the lack of reasonable opportunity of hearing as a violation of the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312568 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• 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.47 & 48/Agr/2025 Assessment Year: 2013-14 & 2014-15 ACIT, Central Circle, Agra. Vs. Sanjeev Agarwal, 42, Z-Tower, 4th Floor, Eminent Khandari, Agra. PAN : ABSPA3710E (Appellant) (Respondent) ORDER Per Sunil Kumar Singh, Judicial Member: These appeals have been preferred by Revenue against the impugned orders dated 20.11.2024 passed in Appeal no. CIT(A)-IV/KNP/10034/2018- 19 and CIT(A)-IV/KNP/10035/2018-19 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.] 2013-14 and 2014-15, 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 assessment orders dated Assessee by Sh. Anurag Sinha, Advocate Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 02.04.2025 Date of pronouncement 29.04.2025 ITA No. 47 & 48/Agr/2025 2 | P a g e 28.03.2016 and 23.03.2016 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 passed u/s. 153A/144 of the Act 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 this appeal 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 ITA No. 47 & 48/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 reveals 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 when the authority has made such orders after concluding that the principles of natural justice have not been complied with. 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 29.04.2025. Sd/- Sd/- (BRAJESH KUMAR SINGH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.04.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra "