2018 (9) TMI 1830 - AT - Income Tax

Assessee's Appeals Partially Allowed, CIT(A) to Reconsider Validity of Search Proceedings

Smt. Jalaja Nair Mohanam Versus The Asst. Commissioner of Income-tax (Inv.) Trivandrum.

The Miscellaneous Applications filed by the assessee were partly allowed. The Tribunal directed the CIT(A) to consider the additional ground challenging ... Rectification of mistake - restoration of additional ground - mistake apparent on record in not specifically mentioning the admission of additional ground to the files of the CIT(A) for adjudication of the issue, in case of Smt.Jalaja Nair [2017 (8) TMI 1540 - ITAT COCHIN] - HELD THAT:- We rectify the mistake and make it clear by incorporating the following lines that, “since the lower authorities did not had an occasion to examine the additional ground raised by the assessee challenging the validity of search proceedings in the light of claim of the assessee, we deem it appropriate to set aside the issue to the file of the CIT(A) for his consideration and direct him to admit the additional ground raised by the assessee and adjudicate the issue as per law, in these cases as well”. Issues:1. Restoration of additional ground challenging the validity of search proceedings.2. Restoration of appeals to the file of CIT(A) for adjudication of issues on merits.Analysis:1. Restoration of additional ground challenging the validity of search proceedings:The Miscellaneous Applications were filed by the assessee challenging the consolidated order of the ITAT dated 31st August, 2017. The issue revolved around the restoration of the additional ground on the legal issue of the validity of search proceedings under section 153C. The Tribunal rectified a mistake on record by explicitly mentioning the admission of the additional ground for adjudication by the CIT(A). The Tribunal directed the CIT(A) to consider the additional ground raised by the assessee and adjudicate the issue as per law, emphasizing the importance of examining the claim of the assessee in this regard.2. Restoration of appeals to the file of CIT(A) for adjudication of issues on merits:Regarding the prayer for restoration of appeals to the CIT(A) for adjudication of issues on merits, the Tribunal noted that the learned AR did not make such a submission during the hearing of the Miscellaneous Application. The ITAT's consolidated order dated 31st August, 2017, mentioned that issues on merits were not adjudicated at that point. The Tribunal highlighted that the M.A. should have ideally been filed in the cases of Sri. K.Nandakumar and Smt.Remy Nandakumar for adjudication of issues on merits before the CIT(A). The Tribunal clarified that if the assessee is aggrieved by the CIT(A)'s subsequent order post the ITAT's order dated 31st August, 2017, she can file appeals to the ITAT raising all issues presented in the original appeal before the Tribunal. Consequently, the Tribunal ordered the appeals to proceed accordingly.In conclusion, the Miscellaneous Applications filed by the assessee were partly allowed, with the Tribunal providing detailed directions on the restoration of the additional ground challenging the validity of search proceedings and the adjudication of issues on merits before the CIT(A) and the ITAT.