First appellate relief cannot be undermined by an unnecessary remand direction; surplus inquiry instructions were expunged.

Where the first appellate authority had effectively deleted the addition made in assessment, a further direction for inquiry or verification that would operate as a remand was held unwarranted and was expunged. The Tribunal treated the surplus direction as unsustainable because the substantive relief granted by the Commissioner (Appeals) had already disposed of the addition, so the assessment was not restored. The Revenue's challenge therefore failed, while the deletion of the addition remained undisturbed.

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Issues: Whether the Commissioner (Appeals) had power to set aside the assessment and direct further inquiry after 01.06.2001, and whether the direction issued in the appellate order required expunction.

Analysis: The Tribunal followed its earlier decision on an identical issue and noted that the Commissioner (Appeals) had in substance deleted the addition made by the Assessing Officer; the further direction enabling the Assessing Officer to make inquiry was not necessary. On that basis, the appellate direction was treated as unsustainable, while the substantive relief granted by the Commissioner (Appeals) was left undisturbed.

Conclusion: The direction to make further inquiry was expunged, and the Revenue's challenge to the relief granted by the Commissioner (Appeals) failed.

Final Conclusion: The assessment was not restored, the substantive deletion of addition stood, and only the surplus direction in the appellate order was removed.

Ratio Decidendi: Where the first appellate authority has effectively granted relief by deleting an addition, a further direction for inquiry or verification that has the effect of remitting the matter is not warranted and may be expunged.

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