ACIT,CIRCLE 4(2)(1), MUMBAI vs. M/S GEHNA JEWELLERS PVT LTD, MUMBAI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that since the order under section 263 was already quashed by the ITAT, the consequent order passed under section 143(3) read with section 263 could not survive. Therefore, the CIT(A)'s order was upheld.
What were the facts?
The Revenue appealed against the CIT(A)'s order which set aside an assessment order passed under section 143(3) read with section 263. The CIT(A) had quashed the assessment order because the basis order under section 263 was already set aside by the ITAT.
What were the issues?
Whether a consequent assessment order under section 143(3) r.w.s. 263 can survive when the original order under section 263 has been set aside by a higher tribunal.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “G” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI PAVAN KUMAR GADALE
This appeal by the Revenue is directed against order dated 31.10.2022 passed by the Ld. Commissioner of Income-tax (Appeals)- National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2012-13, raising following grounds: i. Whether on the facts and in the circumstances of the case and in law, the Id. CIT(A) has erred in setting aside order u/s 143(3) r.w.s. 263 dated 2 M/s Gehna Jewellers Pvt. Ltd. M/s Gehna Jewellers Pvt. Ltd.
31.08.2017 on the basis of tribunals decision in 31.08.2017 on the basis of tribunals decision in 31.08.2017 on the basis of tribunals decision in and thereby allowing ITA No. 3530/MUM/2017 and thereby allowing ITA No. 3530/MUM/2017 and thereby allowing assessee's appeal. assessee's appeal. ii. 'Whether on the 'Whether on the facts and in the circumstances of facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in the case and in law, the Ld. CIT(A) has erred in the case and in law, the Ld. CIT(A) has erred in allowing assessee's appeal by setting aside order allowing assessee's appeal by setting aside order allowing assessee's appeal by setting aside order u/s 143(3) r.w.s. 263 dated 31.08.2017, without u/s 143(3) r.w.s. 263 dated 31.08.2017, without u/s 143(3) r.w.s. 263 dated 31.08.2017, without appreciating the fact that the Revenue has appreciating the fact that the Revenue has appreciating the fact that the Revenue has preferred appeal against the tri preferred appeal against the tribunals decision bunals decision setting aside order dated 24.03.2017 u/s 263 of setting aside order dated 24.03.2017 u/s 263 of setting aside order dated 24.03.2017 u/s 263 of the IT Act, 1961'before Hor'ble Bombay High Court, the IT Act, 1961'before Hor'ble Bombay High Court, the IT Act, 1961'before Hor'ble Bombay High Court, which is still pending. which is still pending. iii. "The appeallant craves leave to amend or alter any "The appeallant craves leave to amend or alter any "The appeallant craves leave to amend or alter any ground or add new ground which may be ground or add new ground which may be ground or add new ground which may be necessary." necessary."
We have heard rival submission of the parties on the issue rival submission of the parties on the issue-in- dispute and perused the relevant material on record. We find that dispute and perused the relevant material on record. We find that dispute and perused the relevant material on record. We find that the Ld. CIT(A) has quashed the assessment order with the finding the Ld. CIT(A) has quashed the assessment order with the finding the Ld. CIT(A) has quashed the assessment order with the finding that base order u/s 263 of the Act dated 04.03.2017 has been set order u/s 263 of the Act dated 04.03.2017 has been set order u/s 263 of the Act dated 04.03.2017 has been set aside by the Income he Income-tax Appellate Tribunal (ITAT), Mumbai ‘G’ tax Appellate Tribunal (ITAT), Mumbai ‘G’ Bench in its order dated 22.11.2017. Therefore, consequent order Bench in its order dated 22.11.2017. Therefore, consequent order Bench in its order dated 22.11.2017. Therefore, consequent order passed u/s 143(3) r.w.s. 263 dated 31.08.2017 is infructuous. passed u/s 143(3) r.w.s. 263 dated 31.08.2017 is infructuous. passed u/s 143(3) r.w.s. 263 dated 31.08.2017 is infructuous.
2.1 Before us, the Ld. Departmental Representative (DR) could not Before us, the Ld. Departmental Representative (DR) could not Before us, the Ld. Departmental Representative (DR) could not controvert that all the grounds on which that all the grounds on which proceedings u/s proceedings u/s 263 was invoked, have already been quashed by the Tribunal (supra). Since, have already been quashed by the Tribunal (supra). Since, have already been quashed by the Tribunal (supra). Since, the order u/s 263 passed by the Ld. PCIT has already been quashed the order u/s 263 passed by the Ld. PCIT has already been quashed the order u/s 263 passed by the Ld. PCIT has already been quashed and therefore, consequent order passed u/s 143(3) r.w.s. 263 of the and therefore, consequent order passed u/s 143(3) r.w.s. 263 of the and therefore, consequent order passed u/s 143(3) r.w.s. 263 of the Act cannot survive. We do not find any infirmity in the order of the Act cannot survive. We do not find any infirmity in the order of the Act cannot survive. We do not find any infirmity in the order of the Ld. CIT(A) on the issue Ld. CIT(A) on the issue-in-dispute. The grounds raised by the dispute. The grounds raised by the Revenue are accordingly dismissed. Revenue are accordingly dismissed.
3. M/s Gehna Jewellers Pvt. Ltd. M/s Gehna Jewellers Pvt. Ltd.
In the result, the appeal filed by the Revenue is dismissed. In the result, the appeal filed by the Revenue is dismissed. In the result, the appeal filed by the Revenue is dismissed.
More judgments on Section 263
- Gillette India Limited, Mumbai vs Principal Commissioner of Income Tax, JaipurITA 1316/JPR/2026[2018-19]Status: Disposed16 Oct 2026AY 2018-19
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Vimal Harilal Baldania, Gandhidham vs The ITO Ward 2, GandhidhamITA 770/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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