Tribunal remand power under income tax law upheld for fresh orders after further investigation

The Tribunal had authority to restore the appeals for fresh orders after further investigation, including remand to the Additional Commissioner under section 263 of the Income-tax Act, 1961. The Supreme Court noted that the section 256(1) question had already been answered by the High Court in the affirmative and that this view accorded with settled law on the Tribunal's power to send matters back for reconsideration. The remand was therefore upheld and the question was answered in favour of the Revenue.

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Issues: Whether the Tribunal was justified in restoring the appeals to the file of the Additional Commissioner of Income-tax for passing fresh orders under section 263 of the Income-tax Act, 1961, after further investigation.

Analysis: The question referred under section 256(1) of the Income-tax Act, 1961, had already been answered by the High Court in the affirmative. The ruling recognised that the Tribunal possessed the power to order such a remand, and that view was consistent with the settled law on the Tribunal's authority to send matters back for further consideration.

Conclusion: The Tribunal was justified in restoring the appeals for fresh orders after further investigation, and the question was correctly answered in favour of the Revenue.

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