Wrong assessment record in appellate order justified remand for fresh decision after due hearing under the income-tax framework.

An appellate order that addresses reassessment proceedings instead of the regular assessment under section 143(3) is unsustainable where it reflects a factual mismatch and does not decide the correct controversy. In such circumstances, the proper course is to set aside the order and remit the matter for fresh adjudication on the correct assessment record after granting the assessee a proper opportunity of hearing. The ITAT Ahmedabad accordingly restored the matter to the appellate authority for decision on merits, leaving the underlying addition undecided and treating the appeal as allowed for statistical purposes.

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Issues: Whether the appellate order passed by the Commissioner (Appeals) on the wrong footing of a reassessment instead of the regular assessment warranted setting aside and fresh adjudication after granting proper opportunity of hearing.

Analysis: The appeal before the appellate authority arose from the regular assessment under section 143(3) of the Income-tax Act, 1961, but the order under challenge was found to have been passed by reference to the reassessment proceedings for the same assessment year. Since the grounds, additions, and factual matrix dealt with in the impugned appellate order related to a different assessment order, the order reflected a factual mismatch and failure to consider the correct subject matter. In these circumstances, the appropriate course was to restore the matter for fresh disposal on the correct assessment after affording the assessee a proper opportunity of hearing.

Conclusion: The impugned appellate order was set aside and the matter was remitted to the appellate authority for decision on merits after giving proper opportunity of hearing.

Final Conclusion: The appeal succeeded only for statistical purposes, with no adjudication on the underlying addition on merits at this stage.

Ratio Decidendi: Where an appellate order is passed by reference to the wrong assessment proceedings and thereby fails to adjudicate the correct controversy, the order is liable to be set aside and the matter remanded for fresh decision after due hearing.

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