Judicial exercise of remand power: Tribunal cannot send a tax appeal back when essential facts are already on record.

The Income-tax Appellate Tribunal's power to remand is discretionary and must be exercised judicially. Where the essential facts are already available from the assessment and appellate records, and the appeal can be decided on that material, a remand for further inquiry is unwarranted. Pending foreign exchange proceedings and the absence of some books did not justify sending the matter back when the question of accrual of income could be determined on the existing record. The Tribunal's remand was therefore treated as unjustified, and the matter was to be decided afresh without unnecessary remand.

---

---

Issues: (i) Whether the Tribunal was justified in setting aside the order of the Appellate Assistant Commissioner and remanding the appeal for fresh disposal. (ii) Whether the Tribunal's disposal of the appeal, in the circumstances, was in accordance with law.

Issue (i): Whether the Tribunal was justified in setting aside the order of the Appellate Assistant Commissioner and remanding the appeal for fresh disposal.

Analysis: The Tribunal has power to remand in an appropriate case, but that power is discretionary and must be exercised judicially. Where the basic facts necessary for decision are already available from the assessment order and the appellate order, and the controversy can be decided on those facts, a remand for further enquiry is unwarranted. The existence of pending foreign exchange proceedings and the absence of some books did not, on the facts found, justify reopening the matter for a fresh factual inquiry when the Appellate Assistant Commissioner had already reached a conclusion on the question of accrual of income.

Conclusion: The remand order was not justified and was invalid, in favour of the assessee.

Issue (ii): Whether the Tribunal's disposal of the appeal, in the circumstances, was in accordance with law.

Analysis: The Tribunal did not decide the merits of the Appellate Assistant Commissioner's conclusion and instead sent the matter back for fresh investigation, although the record before the tax authorities already contained the essential factual basis for deciding whether any taxable income had accrued. In a reference jurisdiction, such remand was not warranted where no further foundational facts were needed for disposal of the appeal according to law.

Conclusion: The appeal was not disposed of in accordance with law, in favour of the assessee.

Final Conclusion: The reference was answered against the Revenue, and the Tribunal was directed to decide the appeal afresh on the existing record without unnecessary remand.

Ratio Decidendi: A remand by the Income-tax Appellate Tribunal is impermissible where the essential facts are already on record and the appeal can be disposed of on the material available; the remand power is discretionary and must be exercised judicially.

---