ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(2), HYDERABAD vs. INDRANI PRASAD, NEW DELHI

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ITA 152/HYD/2020Status: DisposedITAT Hyderabad27 September 2021AY 2009-103 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s action of treating the assessment as non est. The Tribunal noted that the impugned assessment was nullified as the prior ITAT order reversing the revision direction remained in effect.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) which treated the assessment as non est. This assessment was a consequence of a CIT's revision direction that had already been reversed by the ITAT.

What were the issues?

Whether an assessment framed as a consequence of a revised order, which itself has been reversed, is valid. The validity of a second round of assessment proceedings when the basis for it has been nullified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD

Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU

O R D E R PER S.S.GODARA, J.M. :

This Revenue’s appeal for AY.2009-10 arises from the CIT(A)-11, Hyderabad’s order dated 25-11-2019 passed in case No.22 / 2017-18 / DCIT, CC 3(1) / CIT(A)-11 / 2019-20, in proceedings u/s.143(3) r.w.s.263 of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.

2.

We notice at the outset with the able assistance of both the parties that the impugned second round assessment had been framed as a consequence of the CIT’s 263 revision directions which already stand reversed in the tribunal’s order in assessee’s appeal decided on 20-01-2016. The same appears to be the sole reason for the learned CIT(A) to treat the impugned assessment as well as the lower appeal before him as non est.

3.

Learned CIT-DR’s vehement contention before us is that Revenue has already filed appeal before the hon'ble jurisdictional high court against the tribunal’s foregoing order. Be that as it may the fact remains that the impugned assessment itself remains nullified as on date leaving no legs to stand qua the instant second round. We thus uphold the CIT(A)’s action under challenge to this effect.

4.

This Revenue’s appeal is dismissed in above terms.

Order pronounced in the open court on 4th October, 2021

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