Unrestricted remand in tax assessment held unsustainable where only a limited stock transfer dispute remained open.

An unrestricted second remand authorising reopening of the entire assessment was not legally sustainable where the only live controversy concerned a stock transfer supported by Form F. The assessment on undisputed stock transfers had already attained finality and could not be reopened except through the statutory reopening mechanism. The earlier remand was limited to verification of the disputed transfer and the genuineness of Form F, so the appellate forum was required to confine its inquiry to that narrow issue. A fresh de novo assessment on the whole matter was contrary to law and procedure, and the matter was returned for determination of tax liability on the limited disputed record.

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Issues: Whether the second remand order, which authorised reopening of the entire assessment and a de novo inquiry, was legally sustainable when only a limited dispute concerning a stock transfer supported by Form F remained open.

Analysis: The assessment in respect of the undisputed stock transfers had already attained finality and could not be reopened except in accordance with the statutory reopening provisions. The earlier remand had been confined to verification of the disputed stock transfer and the genuineness of Form F. Instead of restricting the inquiry to that limited question, the authority directed a fresh assessment of the entire matter, and the Tribunal affirmed that course without examining whether the limited remand had already been complied with. Such a free-hand remand for reassessment was held to be contrary to law and procedure. At the same time, the Tribunal was expected to decide the tax liability on the available record with respect to the disputed transfer supported by Form F.

Conclusion: The second remand directing reopening of the whole assessment was unsustainable, and the revision succeeded to that extent; the matter was sent back to the Tribunal for a fresh determination on the limited disputed issue.

Ratio Decidendi: An assessment that has attained finality cannot be reopened by way of an unrestricted remand, and an appellate forum must confine the inquiry to the specific issue left open by the earlier remand unless statutory reopening conditions are satisfied.

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