If CIT(A) dismisses a ground after wrongly recording that the same is not pressed by assessee, ITAT can restore the matter for afresh consideration:

AO made an addition on account of water and service charges. Ld. CIT(A) recorded that the assessee had not pressed the said ground since the same was decided against the assessee in earlier years. Assessee preferred an appeal before ITAT and submitted that CIT(A) had wrongly recorded the same. ITAT observed that the DR had not brought anything on record to show the said issue was decided against the assessee in earlier years. Hence, ITAT restored the matter to the file of AO to decide the issue afresh after giving reasonable opportunity of being heard to the assessee alongwith certain directions. On Revenue’s appeal, Hon’ble High Court held that the order of ITAT required no interference and accordingly, revenue’s appeal was dismissed.

[CIT vs. Gujarat Alkalies & Chemicals Ltd. – Tax Appeal No. 816 of 2013]