Remand with fresh verification cannot coexist with adverse merits findings; assessment must be reconsidered independently after hearing the assessee.

An appellate authority may remand an assessment for fresh verification, but it should not simultaneously record adverse findings on the merits after deciding that reconsideration is required. Such inconsistent directions are unsustainable because they may prejudice the subordinate assessing authority, which must act independently on remand. The proper course is a limited remand for fresh assessment in accordance with law, with the assessee given a fresh opportunity and personal hearing. The adverse merits findings were therefore vacated, and the matter was sent back for reconsideration on the records without being influenced by the earlier observations.

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Issues: Whether the Appellate Authority could set aside the assessment and remand the matter for fresh verification while simultaneously recording adverse findings on the merits of the assessee's appeal.

Analysis: The appeal orders contained findings rejecting the assessee's grounds, yet the same orders also remanded the matter for fresh verification. Such directions were inconsistent, because once the authority considered that the matter required reconsideration, it ought to have confined itself to a remand for fresh assessment in accordance with law. Adverse observations on the merits were inappropriate at that stage, as the assessing authority, being subordinate, would likely be influenced by them. The remand was therefore permissible, but the findings on merits could not be sustained. The assessee was also entitled to a fresh opportunity and personal hearing before reexamination.

Conclusion: The adverse findings recorded by the Appellate Authority were vacated, and the matter was remanded to the Assessing Officer for fresh consideration after verification of records and after affording personal hearing to the assessee; the assessing authority was directed to act uninfluenced by the earlier observations.

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