AI Insights
The case involves four appeals by the Deputy Commissioner of Income Tax, Central Circle, Srinagar against Jalal Ud Din Khuroo, concerning the assessment years 2015-16, 2016-17, 2017-18, and 2019-20. The appeals challenged the orders of the CIT (A)-5, Ludhiana, which set aside the ex-parte assessment orders passed by the ACIT, Central Circle, Srinagar under sections 153A and 144 of the Income Tax Act, 1961. The first appellate authority found that the assessee had not made proper compliance during the assessment proceedings and, invoking the amended provisions of section 251(1)(a), remanded the cases back to the AO for fresh assessments. The revenue's appeal to the tribunal argued that the first appellate authority erred in not adjudicating on the merits of the case. However, the tribunal upheld the first appellate authority's decision, agreeing that a fresh assessment was warranted.
Appeal Details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 716759 (ITAT-AMRITSAR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 month(s) 15 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
22-08-2025
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
misc
Appeal Filed On
07-02-2025
Judgement Text
"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. UDAYAN DASGUPTA, JUDICIAL MEMBER AND SH. KHETTRA MOHAN ROY, ACCOUNTANT MEMBER I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 to 2017-18 & 2019-20 Deputy Commissioner of Income Tax, Central Circle, Srinagar (Appellant) Vs. Jalal Ud Din Khuroo, 2nd Petrol Pump, Qamarwari, Parimpora, Srinagar, J & K-190017 [PAN: EUQPK 7086C] (Respondent) Appellant by Respondent by : : Sh. Shabir Ahmad Mir, C.A. Smt. Balvinder Kaur, CIT- D.R. Date of Hearing Date of Pronouncement : : 20.08.2025 22.08.2025 ORDER Per Udayan Dasgupta, J.M.: All the above fours appeals filed by the revenue against the order of the ld. CIT (A)-5, Ludhiana all dated 27.12.2024 passed u/s 250(6) of the Income Tax Act, 1961 has emanated from the order of the ACIT, Central Circle, Srinagar passed u/s 153A r.w.s. 144 of the Act, 1961 all dated 21.01.2022. Printed from counselvise.com 2 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. 2. Grounds of appeal taken by the revenue are almost identical for all the years and the facts of the case and the issues contained therein are also identical and as such all the four appeals are taken up together for disposal for the sake of convenience. 3. Grounds of appeal taken by the revenue in Form No. 36 are as follows in ITA No. 106/Asr/2025: “1. Whether upon facts and circumstances of the case, the ld. CIT(A) has erred in setting aside the order to the file of AO for fresh assessment without giving any reasons and without going into the merits of the assessment order? 2. The appellant craves leave to add, amend, modify, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of the appeal.” 4. Brief facts emerging from records are that the appeal has been filed by the assessee before the first appellate authority against the order of the AO u/s 153A r.w.s. 144 of the Act, 1961 passed by the ACIT, Central Circle, Srinagar. During the course of hearing before the first appellate authority, submission has been made by the assessee along with the documentary evidences, against which remand report has been obtained from the AO. It has been observed by the ld. first appellate authority that the proper compliance has not been made by the assessee in course of assessment Printed from counselvise.com 3 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. proceedings and by virtue of the amended provisions of section 251(1)(a) of the Act, the ld. first appellate authority thought it fit and proper to set aside the assessment back to the files of the Assessing Officer with a direction to make a fresh assessment order after affording reasonable opportunity of hearing to the assessee. 5. Now, the revenue has come up in appeal before the Tribunal, challenging the set aside order, passed by the ld. first appellate authority on the grounds contained in the memorandum of appeal in Form No. 36. 6. In course of hearing, the ld. DR submitted that the first appellate authority has erred in setting aside the order to the files of the AO for fresh assessment without going into the merits of the case and the ld. first appellate authority should have adjudicated on all the issues, more so, when remand report has been obtained from the AO, in response to written submission filed by the assessee. However, the ld. DR could not substantiate as to how the order of the ld. first appellate authority is erroneous or perverse. 7. It is seen from records that the assessment order has been passed ex-parte u/s 153A r.w.s. 144 in absence of any compliance by the assessee and by virtue of the amended provisions of section 251(1)(a) of the Act, the ld. first appellate authority is empowered to set aside the assessment and refer the case back to the AO for making Printed from counselvise.com 4 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. a fresh assessment if the appeal is against the order of assessment made u/s 144. In the instant case, the ld. first appellate authority has rightly concluded that the assessment should be done afresh after affording reasonable opportunity of being heard to the assessee and after considering all documentary evidences and as such, has set-aside the matter back to the files of the AO. 8. On the facts and circumstances of the case, we are in agreement with the opinion of the ld. first appellate authority who has taken a judicious approach and we find no reason to take any different view in the matter. As such, we uphold the order of the ld. first appellate authority and the appeals of the revenue are dismissed being devoid of merits. 9. In ITA Nos. 107 to 109/Asr/2025 for the Assessment Years: 2016-17, 2017-18 & 2019-20, all the appeals are factually identical and similar grounds taken by the revenue in respect of all the orders passed ex-parte by the Assessing Officer and the same has been set aside by the ld. first appellate authority for fresh assessment. 10. Our observations in ITA No.106/Asr/2025 applies mutatis mutandis to all the aforesaid appeals. As such, we uphold the order of the ld. first appellate authority and were also of the view that the assessment orders passed ex-parte has been judiciously set aside for fresh assessment proceedings. Printed from counselvise.com 5 I.T.A. Nos. 106 to 109/Asr/2025 Assessment Years: 2015-16 & Ors. 11. In the result, all the appeals filed by the revenue are dismissed being devoid of merits. Order pronounced in open court as on 22.08.2025. Sd/- Sd/- (Khettra Mohan Roy) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order Printed from counselvise.com "
Mehul