DCIT, CIR-3(3)(1), MUMBAI vs. SICOM LIMITED, MUMBAI

The Department in appeal has raised solitary ground, the same reads as under:

"Whether on the facts and circumstances of the case, the Ld. CIT(A) is justified in quashing the order u/s.143(3) r.w.s. 263 of the Act without appreciating the fact that the department is in appeal before the Hon'ble High Court of Bombay against the Hon'ble ITAT's order quashing the order u/s. 263 of the Act?"

Shri Nikhil Tiwari appearing on behalf of the assessee submitted at the outset that the present appeal by the Revenue is against the findings of CIT(A) in allowing appeal of the assessee assailing assessment order passed u/s. 143(3) r.w.s. 263 of the Income Tax Act, 1961 [ in short ‘the Act’] . He pointed that the Tribunal in vide order dated 21/02/2019 had quashed the order passed by PCIT u/s. 263 of the Act. Once the revision order is quashed, subsequent proceedings arising there from are not sustainable.

Per contra, Shri Anil Sant representing the Department submitted that the Department has filed an appeal against the order of Tribunal dated 21/02/2019, whereby the order passed u/s. 263 of the Act has been quashed.

Both sides heard. It is an undisputed fact that the Tribunal in (supra) has quashed the order of PCIT passed u/s. 263 of the Act. However, by the time aforesaid order was passed by the Tribunal, the Assessing Officer had already passed assessment order u/s. 143(3) r.w.s. 263 of the Act on 22/12/2018. The assessee filed appeal against the said assessment order. The CIT(A) after taking cognizance of the Tribunal order in ITA No.3714/Mum/2018 allowed the appeal of assessee. In facts of the case, we find no infirmity in the impugned order. In the result, appeal of the Revenue is dismissed.