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| The Tax Publishers2020 TaxPub(DT) 4593 (Mad-HC) INCOME TAX ACT, 1961
Section 254
Where issue was as regards status of assessee, i.e., taken as individual at time of assessment but as HUF per rectification order passed by AO under section 154, Tribunal was not justified in dismissing appeal filed by assessee, by placing reliance on its earlier order and accordingly, matter was remanded back to AO for reconsideration of issue.
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Appeal (Tribunal) - Tribunal erroneously dismissed appeal as not maintainable - Issue as regards correct status of assessee required fresh consideration of AO -
Status of assessee was taken as individual at time of assessment. However, as per rectification order passed by AO under section 154, AO changed the status to HUF. Tribunal dismissed appeal filed by assessee, because it passed an earlier order, wherein Tribunal remitted matter back to AO for reconsideration of issue. Held: Tribunal committed an error in coming to conclusion that appeal was not maintainable when fact remained that appeal was maintainable and necessarily Tribunal had to clarify that AO should take a decision in matter as per the remand order without reference to order under section 154 and order of CIT(A). If said observation had been done by the Tribunal, appeal in question itself could have been avoided. Therefore, order of Tribunal was set aside and matter was remanded to AO to comply with direction issued by Tribunal in its earlier order.
REFERRED : G. Muralidhar (HUF) v. Asstt. CIT [ITA. No. 1128/Mds/2015, dt. 29-1-2016] and Asstt. CIT v. G. Muralidhar [ITA No. 1955/Mds/2008, ITA. No. 1987/Mds/2008, dt. 9-9-2011].
FAVOUR : Matter remanded.
A.Y. : 2002-03
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