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2014 (11) TMI 149 - HC - Income TaxMandatory provisions u/s 250 complied or not – Proceedings to be remitted to CIT(A) instead of AO - Whether the Tribunal is justified in reversing the order of the CIT (A) and restoring the order of AO on the ground that CIT (A) has without verifying books of accounts or without admitting additional evidence has given relief on merits to the assessee ignoring that CIT (A) in exercise of power u/s 250 has called for remand report before allowing the relief to the assessee – Held that:- The Tribunal found fault with the CIT(A) for not having either verified the books and for not having furnished an adequate opportunity to the AO to verify them – CIT(A) allowed the appeal of the assessee merely on the basis of the written submission which was forwarded to the AO for his comments – the AO was not furnished an opportunity to submit his comments on the basis of any additional evidence, which was sought to be produced by the assessee before the CIT(A). The Tribunal was justified in holding that the CIT(A) proceeded to allow the appeal of the assessee without the books of account or supporting vouchers being produced before him, only on the basis of the remand report which was called for - there is no reason for the Court to take a different view since it is clear that before the AO sufficient adjournments had already been allowed from time to time - the proper course of action would have been for the Tribunal to have restored the proceedings back to the file of the CIT(A) for disposal of the appeal filed by the assessee, once the Tribunal had found fault with the procedure which was followed by the Appellate Authority - the operative order of the Tribunal, setting aside the order of the CIT(A) cannot be faulted, but the Tribunal ought to have restored the proceedings back to the file of the CIT(A) instead of restoring the original order passed by the AO – thus, the operative part of the order passed by the Tribunal is upheld and the matter is remitted back to the CIT(A) for fresh disposal – Decided partly in favour of assessee.
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