INCOME TAX ACT, 1961

Section 260A

Appeal (High Court) - Substantial question of law - Tribunal relegated the matter to AO to examine matter afresh -

AO issued notice under section 148 on the ground that some part of income had escaped assessment. Questioning the notice issued under section 148, assessees preferred Writ Petition, which were dismissed. Tribunal noted that Single Judge had observed that this court was not inclined to entertain the writ petition for quashing the notice issued under section 148. It would be appropriate for assessee to approach AO and reply to the notice. Tribunal deemed it just and proper to set-aside order, and remand the matter to AO for considering the matter afresh after affording an opportunity to assessees to put forth their defense in all aspects, in terms of the order of Single Judge Held: Tribunal having taken note of the fact that assessee had a very little time to put forth their defense, set-aside the order and had directed AO to examine the matter afresh, leaving it open to assessees to raise all such contentions as were available to them. Exercise of discretion by Tribunal, to remand the matter to AO could not be said to have caused prejudice to assessee. Interference, in proceedings under section 260A is warranted against the order of Tribunal, only if the said order gives rise to a substantial question of law. Thus, appeal was dismissed.

REFERRED : Maruti Nandan Sah v. ITO, Nainital and Maruti Sah and Brothers v. ITO [Special Appeal No. 29, 30 of 2017, dt. 15-3-2017] Maruti Sah & Brothers v. ITO [Writ Petition (M/S) Nos.2804 and 2813 of 2016 dt. 26-12-2016] : 2017 TaxPub(DT) 0343 (Uttarakhand-HC)

FAVOUR : Against the assessee

A.Y. :

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