2025 (3) TMI 2132

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....ounds:- "1. The Learned CIT(A) erred in law and in facts in annulling the assessment when show cause notice was duty Issued by the Assessing Officer and duly responded to by the assessee and the response of the assessee was considered while framing the assessment order. 2. The Learned CIT(A) erred in law and in facts in annulling the assessment without going into the merits of the case on which additions were made. 3. Any other ground that may be taken at the time of hearing." 3. This is a case where the learned CIT(A) annulled the assessment by holding as under:- "7.5 the other contention of the appellant that the A.O. did not follow the CBDT's instruction no.20/2015 dated 29/12/2015. In this regard, ....

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....e passing the final order against the proposed additions/disallowances, due consideration shall be given to the submissions made by the assessee in response to the show-cause notice." 7.5.1 It is notable that in the above direction, the CBDT has used word 'the assessing officer shall issue an appropriate show cause notice', which shows that the CBDT is clear in mind that the said instruction should be strictly adhered in order to complete assessment order. Thus, it is clear from above direction of CBDT that the AO is bound to issue show cause notice to assessee before making any addition or disallowance to explain his position on the proposed additions/disallowances in accordance with the principle of natural justice. Also,....

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....ocedure in nature. Hence, I find merit in the second contention of the appellant. 7.6 The provisions of section 251(1)(a) of the Act empowers the CIT(A) to confirm, reduce, enhance or annul the assessment order in the course of disposing the appeal. In the present case, the AO has not followed the instruction of CBDT's instruction no. 20/2015 dated 29/12/2015. Hence, I annulled the assessment order in question. 8. Since the assessment order in question is annulled in above paras, there is no requirement for adjudicating other substantial & general issues raised by the appellant in ground nos. 2 to 9. 9. As a result, the appeal is allowed for statistical purposes." 4. Per-contra, the assessment order clearly....