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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether the Commissioner (Appeals) was justified in setting aside the reassessment and remanding the matter to the Assessing Officer for fresh consideration under the proviso to section 251(1)(a) of the Income-tax Act, 1961, in a case where the reassessment had been completed after repeated non-compliance by the assessee with notices issued in faceless proceedings.
Analysis: The reassessment arose from proceedings under sections 147 and 144B, where notices under section 142(1) and the subsequent show-cause notices remained largely unanswered. The record showed that the assessee had not supplied complete replies or the verification material sought by the Assessing Officer. The order also noted that section 144B governs reassessment in the faceless regime and that failure to comply with statutory notices can culminate in a best judgment assessment under section 144. The proviso inserted in section 251(1)(a) by the Finance Act, 2024 was applied to hold that, in an appeal against an assessment made under section 144, the Commissioner (Appeals) could set aside the assessment and direct fresh assessment after giving opportunity of hearing.
Conclusion: The Commissioner (Appeals) was held to have validly exercised the power to remand the matter for denovo reassessment, and the Revenue's challenge failed.
Final Conclusion: The appellate order remanding the matter for fresh adjudication was sustained, and the Revenue's appeal was dismissed.
Ratio Decidendi: In an appeal against a best judgment reassessment completed for non-compliance with statutory notices, the Commissioner (Appeals) may invoke the proviso to section 251(1)(a) to set aside the assessment and remand the matter for fresh assessment after due opportunity to the assessee.
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