De novo adjudication remitted: appeal restored to Commissioner (Appeals) for fresh consideration; statistical disposal follows.

The Tribunal addressed whether the appeal should be remitted for fresh consideration and allowed for statistical purposes, noting that the intimation under Section 143(1) had limited an exemption under Section 10 by disallowing part of claimed leave encashment. The assessee relied on a subsequent statutory notification, judicial decisions, and a denial of opportunity to be heard. The Tribunal found these matters required fresh factual and legal examination and restored the appeal to the file of the Commissioner (Appeals) for de novo adjudication so the assessee may substantiate its claim; the appeal is allowed for statistical purposes.

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Issues: Whether the appeal should be restored to the file of the Commissioner (Appeals) for de novo adjudication and the appeal allowed for statistical purposes.

Analysis: The Tribunal noted that the intimation under Section 143(1) restricted exemption under Section 10 by disallowing part of the assessee's claimed leave encashment and that the assessee relied on a subsequent CBDT notification and on judicial decisions while also raising a plea of lack of opportunity of hearing. Having considered the materials on record and the submissions referred to, the Tribunal found it appropriate to remit the matter for fresh consideration by the Commissioner (Appeals) so that the assessee may substantiate the claim and the issues may be adjudicated afresh.

Conclusion: The appeal is restored to the file of the Commissioner (Appeals) for de novo adjudication and is allowed for statistical purposes in favour of the assessee.

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