2026 (4) TMI 816

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....ctively by Alex Puthenchira Jhonson (the assessee/appellant) wherein the appeal filed by the assessee against the reassessment order passed under section 147 read with section 144 read with section 144B of The Income Tax Act, 1961 (The Act) dated 28 March 2022 and 22nd may 2023 respectively passed by the Assessment Unit, Income Tax Department (The Learned AO), by which the learned CIT(A) set aside the assessment orders directing him to pass a fresh assessment order. 2. The only grievance in both these appeals is that the learned CIT-A does not have any power to set-aside the assessment under section 251 of the income tax act and to restore the case h back to the file of the assessing officer to make de novo fresh assessment when the asse....

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....isions of section 2 (22) (e) of the income tax act. 6. Accordingly notice under section 148 was issued to the assessee who filed return on 30 April 2021 in response. The AO noted that assessee has received Rs. 233,350,000 during the year under consideration routed through his family members hence this amount is treated as deemed income in the hands of the assessee. 7. Accordingly the assessment order was passed on 28th of March 2022 u/s 143 (3) rws 147 rws 144B of the Income tax Act at the total income of Rs. 237,575,730/- by making the above addition of Rs. 233,350,000/- under section 2(22)(e) of the act as deemed dividend. 8. The assessee preferred an appeal before the learned CIT(A) who passed an appellate order holding that for....

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....g officer for passing a de nova assessment order unless the assessment order is passed u/s 144 of the Act. The learned advocate specifically referred to the provisions of section 251 of the income tax act and submitted that such powers are available by introduction of the proviso to section 251(1)(a) of the act by virtue of the Finance [ No. 2] act 2024 with effect from 1/10/2024 only when the assessment order has been passed under section 144 of the income tax act. He referred to the assessment order passed by the learned assessing officer in the impugned assessment year wherein the assessment order was passed under section 147 read with section 144B of the income tax act 1961. Therefore he submitted that assessee is assessed under section....

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.... order under section 144 of the act, the learned CIT(A) does not have the power to restore the matter back to the file of the assessing officer for making a fresh assessment. The learned CIT(A) is duty-bound to pass an order on the merits of the case as per grounds of appeal raised before him. 14. In view of the above facts we restore this appeal back to the file of the learned CIT(A) with a direction to decide the appeal on its merits as per grounds of appeal raised by the assessee. 15. Accordingly ground No. 1 raised by the assessee for assessment year 2013-14 is allowed. All other grounds of appeal raised by the assessee becomes infructuous in view of our decision in ground No. 1, hence dismissed. 16. Accordingly appeal for the ....