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2017 (2) TMI 453 - HC - Income TaxRemand of the matter to AO for passing appropriate orders in the scrutiny proceedings under Section 143 (3) - best judgment assessment u/s 144 - Held that:- Though the appellant-revenue had made a prayer for remand of the matter to the Assessing Officer for passing an order in the scrutiny proceedings by considering the material placed by the assessee before the Assessing Officer, the Appellate Tribunal rejected the prayer without recording any reasons much less any cogent reasons. If the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal were of the view that the order under Section 144 of the Act was passed by the Assessing officer in violation of the principles of natural justice, the Authorities should have made an appropriate order for remand of the matter to the Assessing Officer in the proceedings initiated against the assessee under Section 143 (3) of the Act. Without assigning any reason for rejecting the prayer for remand, the Tribunal rejected the prayer in paragraph 8 of the impugned order. Though it was pointed out by the appellant-revenue that the Assessing Officer that had passed the order under Section 144 of the Act has changed and the matter would come up before another Income Tax Officer and no prejudice would be caused to the assessee if the matter is remanded, the Tribunal rejected the prayer of the appellant-revenue. Since no order was passed in the matter of scrutiny under Section 144 (3) of the Act and the order was passed under Section 144 of the Act on the assumption that the assessee had not supplied the relevant material that was sought from him, it was necessary for the Tribunal to have remanded the matter to the Assessing Officer to complete the scrutiny and pass an appropriate order in the proceedings under Section 143 (3) of the Act. The substantial question of law is answered in favour of the appellant-revenue and against the assessee.
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