GENPACT CONSULTING (SINGAPORE) PTE. LTD. (EARLIER KNOWN AS"HEADSTRONG CONSULTING (SINGAPORE) PTE. LTD),GURUGRAM vs. ACIT CIRLCE 2(1)(1) INTERNATIONAL TAX, NEW DELHI

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ITA 476/DEL/2023Status: HeardITAT Delhi03 March 2023AY 2015-163 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the original revisionary order under Section 263 had been set aside by a previous Tribunal order. Consequently, the assessment order passed in pursuance to the non-existent revisionary order could not survive.

What were the facts?

The assessee's appeal was against a final assessment order passed pursuant to directions from the Dispute Resolution Panel (DRP). This assessment order was itself a consequence of a revisionary order passed by the CIT under Section 263 of the Income-Tax Act.

What were the issues?

Whether consequential assessment orders can survive when the original revisionary order under Section 263 has been set aside.

Which sections of the Income-tax Act were involved?

Section 263,Section 144C(13),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘D’ NEW DELHI

Before: SHRI SAKTIJIT DEY & DR. BRR KUMAR, ACCOUNTANT MEMBR

For Respondent: Shri R.S. Yadav, Sr. DR
Hearing: 03.03.2023Pronounced: 03.03.2023

ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: Captioned appeal by the assessee is against the final assessment order dated 27.01.2023 passed by the Assessing Officer under Sections 144C(13)/263/143(3) of the Income-Tax Act,1961 pertaining to assessment year 2015-16, in pursuance to the directions of learned Dispute Resolution Panel (DRP).

2.

We have heard Shri Sachit Jolly, learned counsel appearing for the assessee and Shri R.S. Yadav, learned Departmental Representative. Though, today the matter was listed for considering assessee’s request for fixing an early date of hearing of appeal, however, considering the nature of dispute, the parties before us submitted that the appeal itself can be disposed of. Therefore, with the consent of both the parties, the appeal was taken up for hearing and disposal.

3.

Learned counsel appearing for the assessee submitted before us that the assessment order under challenge was passed in pursuance to the directions of learned Commissioner of Income Tax (International Taxation), New Delhi under Section 263 of the Act. He submitted, while deciding assessee’s appeal against the order dated 30.03.2021 passed under Section 263 of the Act, the Tribunal set aside the order passed under Section 263 of the Act and restored the assessment order, which was subjected to proceedings under Section 263 of the Act. He submitted, though, order passed by the Tribunal was brought to the notice of learned Dispute Resolution Panel and the Assessing Officer, however, they still went ahead with their respective directions/orders, though, the proceedings have become infructuous.

4.

Learned Departmental Representative could not controvert the aforesaid submissions of the assessee.

5.

Having considered rival submissions, we find, the assessment order under challenged in the present appeal was passed by the Assessing Officer in pursuance to an order dated 30.03.2021 passed by the Learned CIT under Section 263 of the Act. It is evident, against the revisionary order passed under Section 263 of the Act, the assessee had preferred an appeal before the Tribunal.

While deciding assessee’s appeal, being the Tribunal in order dated 13.06.2022 has set aside the order under Section 263 of the Act and restored the assessment order, which was subjected to revisionary proceedings.

Thus, when the revision order passed under Section 263 of the Act, itself, is not in existence, the consequential orders passed in pursuance to the revision order, including, the impugned assessment order cannot survive.

6.

In view of the aforesaid, we quash the assessment order dated 27.01.2023 under challenge in the present appeal.

7.

In the result, the appeal is allowed, as indicated above.

Order pronounced in the open court on 03rd March, 2023.

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