Relief granted based on remand report of AO, can’t be challenged in further appeal – ITAT

Once, relief is granted based on the remand report of the AO, revenue would be precluded from filing any further appeal – ITAT

In a recent judgment, the ITAT has held that once, relief is granted based on the remand report of the AO, revenue would be precluded from filing any further appeal.

ABCAUS Case Law Citation:
ABCAUS 3852 (2024) (01) ITAT

Important Case Laws relied upon by parties:
Smt B Jayalakshmi vs. ACIT reported in 96 taxmman.com 486 (Mad).

In the instant case, the appeal was filed by the Income Tax Department /Revenue and cross objections were filed by the assessee in connection with order passed by the CIT(A). had challenged the order passed by the CIT(A) in confirming against the order of assessment passed u/s 143(3)/153A of the Income Tax Act, 1961 (the Act).

A search and seizure operation u/s 132 of the Act was conducted along with others Group of cases. The order u/s 127 of the Act assigning jurisdiction over this case to the DCIT was passed by the PCIT Ghaziabad. Notice u/s 153A of the Act was issued and duly served upon the assessee.

In compliance to the same, the assessee filed return of income. Later on, notices u/s 142(1) of the Act alongwith questionnaire were also issued and the AO completed the assessment by making an addition being LTCG on the sale of property and further addition u/s 68 of the Act on account of unexplained unsecured loans taken.

Before the CIT(A), the assessee reiterated and filed detailed submissions and also filed additional evidences. The CIT(A) sent the submissions and the additional evidences to the AO and called for remand report from the AO. The CIT(A) on the basis of remand report from the AO deleted the addition on account of capital gain and unsecured loans and granted relief to the appellant.

The Tribunal observed that from the remand report it could be seen that the AO had accepted the contentions of the assessee partly in the remand proceedings. In the remand report the AO had stated that the submission of the appellant was verified and having gone through the additional submission as submitted by the assessee as well as examination of additional evidences, the contention of the assessee seems to be acceptable.

The Tribunal noted that the CIT(A) had relied on the same remand report and granted relief to the assessee.

The Tribunal opined that once, relief is granted based on the remand report of the AO, revenue would be precluded from filing any further appeal before the Tribunal. This view is fortified by the decision of Hon’ble High Court.

The Tribunal held that there was no infirmity in the order of the CIT(A) granting relief to the assessee qua the assessee.

In the result, the appeal of the revenue was dismissed.

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