POONAM ARORA,KASHIPUR V. ASSESSMENT UNIT, HALDWANI

SA 11/DDN/2026

AI Insights

The case involves Poonam Arora, the appellant, contesting an order from the CIT(A) which remanded her case back to the Assessing Officer under section 251(1)(a) of the Income Tax Act, 1961. The appellant argued that the CIT(A) should have decided the case on its merits instead of remanding it. The Income Tax Appellate Tribunal (ITAT) agreed with the appellant, noting that the CIT(A) had misdirected himself by remanding the case, as the specific provisions allowing such action were applicable only to assessments made under section 144 of the Act, which was not the case here. Consequently, the ITAT set aside the CIT(A)'s order and directed a decision on the merits of the case.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835697 (ITAT-DEHRADUN)
• Duration Of Justice: 20 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2023-2024
• Appeal Filed On: 22-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMAR PAL SINGH
• Assessee Lawyers: PAWAN KUMAR NATH
• Keywords: Set aside; Opportunity of being heard; Application of stay
• Section: 144

Judgement Text

"STAY APPL. NO. 11/DDN/2026 & ITA 16/DDN/2026 POONAM ARORA 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “DB”NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER AND SHRISANJAY AWASTHI, ACCOUNTANT MEMBER Stay Application No.11/DDN/2026 िनधा\u0005रणवष\u0005/Assessment Year: 2023-24 POONAM ARORA, Gram Kharmasa, Kashipur, (U.S. Nagar), UTTARAKHAND. PAN No.AJMPA5746J बनाम Vs. ASSESSMENT UNIT, IT DEPARTMENT, AO, Circle 2(1)(1), Haldwani, UTTARAKHAND. अपीलाथ\u0011 Appellant \u0013\u0014यथ\u0011/Respondent & आ.अ.सं/.I.T.A No.16/DDN/2026 िनधा\u0005रणवष\u0005/Assessment Year:2023-24 POONAM ARORA, Gram Kharmasa, Kashipur, (U.S. Nagar), UTTARAKHAND. PAN No.AJMPA5746J बनाम Vs. ASSESSMENT UNIT, IT DEPARTMENT, AO, Circle 2(1)(1), Haldwani, UTTARAKHAND. अपीलाथ\u0011 Appellant \u0013\u0014यथ\u0011/Respondent Assessee by Shri Pawan Kumar Nath, AR Revenue by Shri Amar Pal Singh, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 09.02.2026 उ\u000eोषणाक\bतारीख/Pronouncement on 11.02.2026 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. The Stay Application in this case was listed for hearing and it was pointed out by the Ld. AR that the only prayer of the assessee was that the Ld. Addl./JCIT (Appeals) should have decided the case on merits rather than remanding the same back u/s 251(1)(a) of the Act, proviso thereon. Printed from counselvise.com STAY APPL. NO. 11/DDN/2026 & ITA 16/DDN/2026 POONAM ARORA 2 1.1 We also find that the quantum appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter referred to as “the Act”), dated 26.11.2025, passed by Ld. CIT(A)-NFAC. 2. The Ld. AR read out the provisions of section 251(1) of the Act and stated that the assessee had duly complied before the Ld. AO as well as the Ld. CIT(A). Thereafter, it was argued, that there is a limited opportunity available with the first appellate authority to remand any matter back to the Ld. AO and this was certainly not the case where the matter could have been remanded back,considering the extensive compliance made before the authorities below. The Ld. AR requested for disposing of the main appeal. 2.1 With the agreement of both the Revenue and the AR it was decided to take up adjudication of the main appeal. 2.2 The Ld. DR relied on the orders of the authorities below. 3. We have carefully considered the rival submissions and have gone through the records before us. For the sake of reference, the relevant provisions of the Act deserve to be extracted: - “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. Provided that where such appeal is against an order of assessment made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment.” 3.1 It is seen that the powers given to the first appellate authority, with effect from 01.10.2024, specifically provide that the assessment order must be made u/s 144 of the Act. It is clear that in no other circumstances can this particular provision be invoked. Accordingly, we find that the Ld. CIT(A) has misdirected himself in Printed from counselvise.com STAY APPL. NO. 11/DDN/2026 & ITA 16/DDN/2026 POONAM ARORA 3 remanding the matter back to the Ld. AO u/s 251(1) of the Act. In light of the provision of law, we set aside the impugned order and direct that the Ld. CIT(A) would take up adjudication on merits, after giving an opportunity of being heard to the assessee. 4. In the result, the appeal of the assessee is allowed. 5. Stay Application No.11/DDN/2026: since the main appeal has been decided, hence, the Stay Application becomes infructuous. Order pronounced in the open court on 11.02.2026 Sd/- Sd/- (YOGESH KUMAR US) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 11.02.2026 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "