Procedure of fresh assessment in case of remand by first appellate authority. - Income Tax - 1725/CBDT

INSTRUCTION NO. 1725/CBDT Dated: August 22, 1986 Allahabad and Andhra Pradesh High Courts have in their judgements in CIT Vs. Bandaru Sanyasi Raju (1981) 127 ITR 453 (AP) and S.P. Kocher Vs. ITO (1984) 145 ITR 255 (Alld) held that first appellate authorities have power to set aside assessments partially by deciding some of the points in appeal before them and remanding the case to the assessing officer for fresh assessment on other points. It is found that in giving appeal effect to such appellate orders as partially set aside assessment orders different practices are followed in different charges. After considering various practices being followed in different charges, the Board has decided that in giving effect to such appellate orders, the original order should be revised as per appellate order in respect of the points which are decided in the appellate order. In regards to points on which the assessment has been remanded for fresh order, the amount as originally assessed may be included and the demand be raised accordingly subject to rectification on completion of fresh assessment on those points. The demand relating to the points on which the assessments has been remanded should not be enforced and should be kept in abeyance till the fresh order on those points is passed and the demand is rectified accordingly. The Board desires that this practice should be uniformly followed in all charges.