Deepak Jaiswal vs Income Tax Officer

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 01.01.2026, for Assessment Year 2020-21.

Shri Jitender Jindal, appearing on behalf of the assessee submits that while filing appeal against the assessment order dated 21.02.2025 passed u/s.147 r.w.s. 144B of the Income Tax Act,1961(hereinafter referred to as ‘the Act’), the assessee has raised multiple grounds before the First Appellate Authority including some jurisdictional issues. The CIT(A) acknowledges in the impugned order that the assessee has raised multiple jurisdictional issues which goes to the root of validity of reassessment proceedings but has not given any finding of the said issues. The CIT(A) has restored appeal back to the Assessing Officer (AO) for making fresh assessment. The Id. Counsel submits that without deciding jurisdictional issue, the CIT(A) has erred in restoring the addition on merits to the AO.

Per contra, Shri Manoj Kumar representing the department vehemently defending the impugned order and prayed for dismissing appeal of assessee.

Both sides heard, orders of the authorities below examined. A perusal of grounds of appeal filed by the assessee before the CIT(A), it is evident that the assessee has raised some legal grounds challenging validity of assessment proceedings/assessment order apart from assailing addition on merits. The CIT(A) in para 5.4(b) of the impugned order records that the assessee/appellant has raised multiple jurisdictional objections and they go to root of validity of assessment proceedings but has failed to decide the legal issues. Before travelling to decide issues on merits, it is mandatory to first adjudicate jurisdictional issues. Unless, the jurisdictional issues are settled, it is not appropriate for the Appellate Authority to decide the issues on merit. Therefore, I deem it appropriate to restore this appeal back to the CIT(A), to decide the jurisdictional legal issues raised by the assessee in grounds of appeal before travelling further to adjudicate the issue(s) on merits. Hence, impugned order is set aside and appeal of the assessee is allowed for statistical purpose in the terms aforesaid.

Order pronounced in the open court on Monday the 16^th day of February, 2026.