Remand jurisdiction cannot pre-empt fresh adjudication; directions controlling the enquiry were unsustainable despite remand being justified.
Where the first appellate authority failed to record clear findings on the authenticity of transactions and the bona fides of the selling dealer, remand was justified because the matter had not been finally determined on material issues. However, once the Tribunal set aside that order, it could not control the fresh adjudication by directing the assessing authority how to conduct the enquiry. The remand was therefore upheld, but the directions prescribing the manner of enquiry were held unsustainable, and the revision succeeded only to that limited extent.
Issues: Whether the Tribunal was justified in setting aside the first appellate order and remanding the matter, and whether it could direct the assessing authority to conduct the fresh enquiry in a particular manner.
Analysis: The assessing authority had proceeded on the basis that the selling dealer was not bona fide, its registration had been cancelled and returns had not been filed. The first appellate authority accepted the assessee's invoices, purchase register and claim of banking payments, but did not record a clear finding on the authenticity of the transactions or the bona fides of the seller. The remand therefore could not be said to rest on a wholly new case. However, once the Tribunal set aside the first appellate order, it ought not to have constrained the subordinate authority by dictating the manner in which the enquiry should be made. A fresh decision had to be left to be taken according to law on the basis of the pleadings and evidence adduced by both sides.
Conclusion: The Tribunal's decision to remand was upheld, but its specific directions controlling the manner of enquiry were held unsustainable. The revision was allowed to that limited extent.
Ratio Decidendi: Where an appellate authority has failed to record a clear finding on material issues, remand may be justified, but the remitting court or tribunal should not pre-empt the fresh adjudication by prescribing how the subordinate authority must decide the matter.
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AI Drafter ✕
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