ITAT Delhi Remands Reassessment Appeals to CIT(A) for Failure to Decide Jurisdictional Grounds:

The assessee is Late Shyam Sunder who had filed appeals against orders of the CIT(A)  dated February 4, 2025, whereby the assessment orders were set aside to the file of the AO for fresh assessment under Section 251(1)(a) of the Income Tax Act, 1961. The appeals concerned Assessment Years 2013-14 to 2016-17 and involved reassessment proceedings initiated under Section 147 pursuant to notices issued under Section 148.

In the lead appeal for AY 2013-14, the assessment had originally been processed under Section 143(1). Subsequently, notice under Section 148 dated March 30, 2021 was issued and the assessment was completed ex parte under Section 144, resulting in an addition of Rs. 55,82,620 under Section 68. The assessee had not complied with the notices issued during the reassessment proceedings.

Before the CIT(A), the assessee had challenged, inter alia, the validity of reassessment under Sections 147 and 148, the absence of compliance with Section 148A, validity of approval under Section 151, the alleged lack of tangible material and the manner in which the reassessment proceedings were initiated. The CIT(A) set aside the assessment to the file of the AO for de novo assessment under Section 251(1)(a).

The Tribunal referred specifically to Section 250(6) of the Income Tax Act, which requires an appellate order to be in writing and to state the points for determination, the decision thereon and the reasons for the decision.

The Tribunal observed that the CIT(A) had expressly stated that the assessee should be given an opportunity to present evidence concerning the reopening of assessment, but had not itself adjudicated the legal grounds challenging the validity of such reopening. According to the Tribunal, this amounted to non-compliance with Section 250(6).

The Tribunal held that the CIT(A) had failed to discharge the appellate function mandated under Section 250(6) by not deciding the jurisdictional grounds raised by the assessee before remanding the assessment to the AO.  The matters were restored to the file of the CIT(A) for fresh adjudication after providing the assessee an effective opportunity of hearing. The CIT(A) was directed to decide all grounds raised by the assessee, including the jurisdictional grounds, in accordance with law.