Remand by revisional authority valid where accounts were not properly scrutinised and further inquiry was needed.

A remand by an appellate or revisional authority is permissible where further inquiry is needed on a point already raised and decided, but it cannot be used to give the assessing authority a fresh chance to discover new defects in the accounts. Here, the revising authority found that the assessee's accounts had not been properly scrutinised by the Sales Tax Officer, making reconsideration of the assessment appropriate rather than outright annulment. The remand was therefore treated as valid in law and the challenge to it failed.

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Issues: Whether an order of remand passed by the revising authority was valid in law where the assessing authority had rejected the assessee's accounts on one ground and the revising authority found that the accounts had not been properly scrutinised.

Analysis: A remand is permissible when the appellate or revisional authority considers that further investigation is required on a point already raised and decided. It is not to be used merely to afford the assessing authority a fresh opportunity to search for new defects in the account books. On the facts, the revising authority recorded that the assessee's accounts had not been properly scrutinised by the Sales Tax Officer, which justified reconsideration of the assessment rather than outright annulment.

Conclusion: The order of remand was held to be valid and the question was answered in the affirmative, against the assessee and in favour of the department.

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