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TMI Blog2025 (2) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the record. 2. Upon hearing the learned counsel for the appellant as also the learned Standing Counsel for Revenue, we find that the appellants have made out a case for admission on the following substantial question of law in both the appeals: "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in remanding the matter back to the file of Commissioner of Income Tax Appeals to decide the purely legal issue even after admitting the additional ground as purely legal ground under Rule 27 itself? 3. The facts of the case, in brief, is that the appellant which is a private limited company engaged in the business of real estate was subjected to search and seizure under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order dated 31.12.2019. Aggrieved by the said order of the CIT(A), the Revenue preferred two appeals before the Income Tax Appellate Tribunal in ITA Nos.604 and 605 of 2022. 4. The learned Income Tax Appellate Tribunal, after considering the submissions of the Revenue, remanded the matter back to the CIT(A), by making the following observations: "Having admitted the application filed by the assessee under Rule 27 of ITAT Rules, 1963, we find that the assessee has challenged the issue of legality of notice issued u/s 274 r.w.s. 270A/271AAB for both the assessment years for the first time before the Tribunal and the facts with regard to said legal issue are not on record. Further, the assessee had also raised the above issue before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. It is the contention of the learned counsel for the appellant that the Appellate Tribunal since had the jurisdiction of entering into the facts while deciding the appeal and the grounds and facts being explicit before the Appellate Tribunal, should not have remanded the matter beck to the CIT(A) rather should have decided the matter on its own, including the question of the applicability of Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963 (for short 'the Rules'). 7. Though the learned counsel for the Revenue contended that no prejudice would be caused to the interest of the appellant and that these grounds which have been raised and left to be agitated and adjudicated upon would still be decided by the CIT (A) and either of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein the Hon'ble Supreme dealing with the powers of the Appellate Tribunal has made the following observations: "The Appellate Tribunal is a final fact-finding body and therefore, should have examined the facts as well as the legal position before pronouncing the final outcome". 11. Similar view has been taken by the Orissa High Court in the case of Siksha "O' Anusandhan vs. Commissioner of Income Tax and others 2010 336 ITR 112 (Orissa) wherein in paragraph 21 held as under: "Admittedly, the Tribunal after being satisfied that the additional ground taken by the appellant before it to be a question of law and goes to the root of the matter vide order dated May 5, 2009 (annexure 8) directed the learned Departmental representa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt. The Allahabad High Court in Mohd. Ayyub and Sons Agency's case [1992] 197 ITR 637 (All), held that the power of the Tribunal to permit any party to the appeal to raise the question of jurisdiction, which goes to the root of the matter and does not involve further investigation into facts, cannot be disputed on the plain reading of rule 11 of the Income-tax (Appellate Tribunal) Rules, 1963. Indeed, on such a plea being taken, the Tribunal is under a statutory obligation not only to entertain the plea but also to decide the same after providing sufficient opportunity of being heard to the other side". 12. Taking into consideration the aforesaid legal precedents on the power vested with the fact-finding Appellate Tribunal, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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