Validity of reopening: appellate authority must decide contested jurisdictional objections rather than summarily remitting the assessment.

Where the assessee specifically contested the legality of reopening and the validity of the notice, the appellate authority must adjudicate those jurisdictional and legal grounds rather than simply setting aside a best judgment assessment and remitting the matter; the tribunal applied the principle that the first appellate authority's power to set aside orders does not permit summary remand when jurisdictional objections under reopening and notice provisions are squarely raised. Outcome: the appellate order was set aside and the matter remitted back to the appellate file with a direction to decide the jurisdictional and procedural grounds after affording the assessee a hearing.

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Issues: Whether the Commissioner of Income-tax (Appeals) erred in setting aside an assessment completed under section 144 r.w.s. 147 of the Income-tax Act, 1961 and remanding the matter to the Assessing Officer without adjudicating the substantive jurisdictional and legal grounds (including validity of reopening under section 147 and notice under section 148) raised by the assessee.

Analysis: The Tribunal noted that the assessee had raised specific jurisdictional and legal grounds before the CIT(A) challenging the validity of reopening under section 147 and issuance of notice under section 148, along with related grounds contesting jurisdictional approvals and procedural defects. The CIT(A) set aside the AO's best judgment assessment under section 144 and remanded the matter for fresh assessment relying on the amended section 251(1) power to set aside orders. Coordinate Benches have held that where jurisdictional validity of reopening is specifically contested before the first appellate authority, the CIT(A) should adjudicate those grounds rather than summarily remanding the matter; if the CIT(A) does not adjudicate such contested grounds, the matter should be remitted back to the CIT(A) with direction to decide those grounds after giving opportunity of hearing.

Conclusion: The CIT(A)'s order is set aside and the matter is remitted to the file of the CIT(A) with a direction to adjudicate the jurisdictional and legal grounds raised by the assessee (including validity of reopening under section 147 and notice under section 148) after providing reasonable opportunity of hearing to the assessee; the appeal is allowed for statistical purposes in favour of the assessee.

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