INCOME TAX OFFICER, LUDHIANA V. SUSHMA GOYAL, LUDHIANA

ITA 15/CHANDI/2025

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A), which had remanded the assessment order back to the Assessing Officer. The original assessment included an addition of Rs. 3,56,27,000 as unexplained money under section 69A of the Income Tax Act, 1961. The CIT(A) set aside the assessment order without discussing the merits, citing the need for further examination by the AO. The Tribunal's decision focused on the procedural correctness of the CIT(A)'s remand under the amended section 251(1)(a), which was applicable as the original assessment was made under section 144.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717337 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 02-01-2025
• Other Referred Cases: Principal Commissioner of Income Tax-3, Vs. Ashokji Chanduji Thakor
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Keywords: Set aside

Judgement Text

"आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘B’, CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 15/CHD/2025 Ǔनधा[रण वष[ / Assessment Year : 2013-14 The ITO, Ludhiana बनाम Vs. Sushma Goyal, 29/1, The Mall, Near Govt College for Women, Civil Line,Ludhiana èथायी लेखा सं./PAN NO: AAVPG4168J अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( Virtual Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : None राजèव कȧ ओर से/ Revenue by : Smt. Kusum Bansal, CIT, DR (Virtual Mode) सुनवाई कȧ तारȣख/Date of Hearing : 11.08.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 12.08.2025 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the Revenue against the order dated 20.11.2024 of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi. 2. Grounds of appeal are as under: - 1. That the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of Printed from counselvise.com 15-Chd-2054 Sushma Goyal, Ludhiana 2 the assessee and setting aside the matter to the file of AO, without going into and discussing the merits of the case that Assessing Officer had given several opportunities to file the reply to the assessee 2. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of the assessee and setting aside the matter to the file of AO, for adjudication without taking into consideration whether there were justifiable grounds for making total non- compliance by the assessee before the CIT(A) as well as AO. 3. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of the assessee, and setting aside the assessment order back to the file of the A.O after merely provoking the newly inserted provision 251(1)(a) to section 251 of the Income Tax Act. 1961. 4. That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition of Rs. 3,56,27,000/- made by the AO being unexplained money u/s 69A of the Income Tax Act. 1961 and the assessee had failed to furnish any explanation on this issue during the course of assessment proceedings. 5. That, reliance is placed on the judgement of Hon'ble High Court of Gujarat at Ahmedabad in the case of Principal Commissioner of Income Tax-3, Vs. Ashokji Chanduji Thakor dated 27.06.2018 wherein the order passed by the Hon'ble ITAT was quashed & order of AO/CIT(A) were restored. Printed from counselvise.com 15-Chd-2054 Sushma Goyal, Ludhiana 3 6. That the appellant craves leave to add or amend any ground of appeal before it is finally disposed. 3. Although the Revenue has taken six grounds of appeal in this case but the main issue involved is the action of the Ld. CIT(A) in allowing the appeal of the Assessee and setting aside the assessment order back to the file of the Assessing Officer after invoking the newly inserted proviso to section 251(1)(a) of the Income Tax Act, 1961 (in short 'the Act'). 4. During proceedings before us, the ld. DR submitted that instead of deciding the appeal on merit, the CIT(A) has remanded it back to the file of the AO. 5. We have seen the order of the Ld. CIT(A) which was passed by him on 20.11.2024. We find that there is an amendment to section 251 of the Act in the year 2024 w.e.f 1.10.2024 which says as under: “251. (1) In disposing of an appeal, the Commissioner (Appeals) shall have the following powers- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment Printed from counselvise.com 15-Chd-2054 Sushma Goyal, Ludhiana 4 [Provided that where such appeal is against an order of made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment). 6. We find that the assessment order was passed by the Assessing Officer u/s 144, therefore, the appellate order passed on 14.11.2024 is very much covered under the new sub section inserted in section 251 w.e.f 1.10.2024. Accordingly, we find that the action of the Ld. CIT(A) is very much justified. Thus, the Revenue’s appeal on this issue is dismissed. 7. In the result, Revenue’s appeal is dismissed. Order pronounced on 12.08.2025. Sd/- Sd/- ( RAJPAL YADAV ) ( KRINWANT SAHAY) Vice President Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "