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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SHRI G.S. PANNU, & SHRI SANDEEP SINGH KARHAIL
The present appeal has been filed by the assessee challenging the impugned order dated 31/03/2021, passed under section 263 of the Income Tax Act, 1961 (“the Act”) by learned Principal Commissioner of Income Tax–2, Mumbai, [“learned PCIT”], for the assessment year 2015–16.
In the present appeal, the assessee is aggrieved against the invocation of revisionary proceedings under section 263 of the Act by the learned PCIT.
We have considered the submissions of both sides and perused the material available on record. The brief facts of the case as emanating from the record are that the assessee is engaged in the business of carrying out
Monsanto Investments India Pvt. Ltd. ITA no.1894/Mum./2021 investment activities in shares and securities of group companies. For the year under consideration, the assessee filed its return of income on 25/09/2015 declaring a total income of Rs. Nil after claiming exemption of dividend income of Rs. 243,98,98,027. The return filed by the assessee was selected for scrutiny and statutory notices under section 143(2) as well as section 142(1) of the Act were issued and served on the assessee. The Assessing Officer vide order dated 27/12/2017 passed under section 143(3) of the Act assessed the total income of the assessee at Rs. Nil.
Subsequently, notice under section 263 of the Act was issued to the assessee on 22/03/2021 initiating the revisionary proceedings in the case of the assessee. Vide impugned order dated 31/03/2021 passed under section 263 of the Act, the learned PCIT came to the conclusion that the assessment order dated 27/12/2017 passed under section 143(3) of the Act is erroneous insofar as it is prejudicial to the interest of the Revenue due to lack of enquiry by the Assessing Officer as per Explanation 2 to section 263 of the Act. Accordingly, the learned PCIT set aside the assessment order passed under section 143(3) of the Act and directed the Assessing Officer to conduct requisite enquiries to arrive at the correct conclusion as per law and frame the order of assessment de novo, keeping in mind the observations made in the order passed under section 263 of the Act.
It is the plea of the assessee, which has not been controverted by any evidence on record that no order has been passed by the Assessing Officer, till date, pursuant to the aforesaid directions issued under section 263 of the Act. As per the assessee, as per section 153 of the Act, the limitation period for Monsanto Investments India Pvt. Ltd. ITA no.1894/Mum./2021 passing the order pursuant to the directions vide impugned order passed under section 263 of the Act was till 31/03/2022. We find that vide letter dated 16/12/2022 addressed by the ITO-10(2)(4), Mumbai to the learned Departmental Representative, it was claimed that the limitation period for completing the assessment pursuant to the impugned order passed under section 263 of the Act is available till 31/03/2023. From the perusal of the record, we find that the AO though had issued a notice dated 15/03/2022 under section 142(1) of the Act, which was duly responded to by the assessee, however, no assessment order, pursuant to the directions issued by the learned PCIT vide impugned order, has been brought on record till date.
In view of the aforesaid facts and circumstances, the assessee vide letter dated 14/07/2023 sought withdrawal of the present appeal being academic and infructuous, with the liberty to apply for revival of the said appeal in the future, in case the Revenue passes/has passed an order giving effect to the impugned order passed under section 263 of the Act.
Therefore, in view of the facts and circumstances of the present case as noted above, we deem it appropriate to accept the prayer of the assessee seeking withdrawal of the present appeal, as the same has been rendered academic in view of the fact that no order has been passed by the Assessing Officer, pursuant to the directions issued vide impugned order, within the time limit provided under the Act. Accordingly, the present appeal is dismissed as withdrawn. However, liberty is granted to the assessee to seek recall of this order, if, at a later point in time, it is found that the order was passed or the Monsanto Investments India Pvt. Ltd. ITA no.1894/Mum./2021 same is passed by the Assessing Officer pursuant to the directions issued vide impugned order dated 31/03/2021 passed under section 263 of the Act.
In the result, the appeal by the assessee is dismissed. Order pronounced in the open Court on 27/07/2023