ACIT-13(1)(2), MUMBAI vs. M/S PLAY GAMES 27X7 PVT. LTD., MUMBAI

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ITA 2534/MUM/2022Status: DisposedITAT Mumbai31 January 2023AY 2013-142 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 held that since the revision order passed by the PCIT was quashed by the ITAT, the assessment order passed in pursuance thereof became a nullity. Therefore, the CIT(A) was correct in dismissing the appeal proceedings before him.

What were the facts?

The Revenue appealed against an order of the CIT(A) which dismissed the appeal proceedings. The CIT(A) had dismissed the appeal because the assessment order, passed under Section 143(3) r.w.s. 263, was based on a revision order that was subsequently quashed by the ITAT.

What were the issues?

Whether an assessment order passed pursuant to a revision order that is subsequently quashed is valid. The validity of the CIT(A)'s decision to dismiss the appeal based on the quashed revision order.

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, MUMBAI ‘C’ BENCH, MUMBAI.

Before: Shri B.R. Baskaran (AM) & Shri Pavan Kumar Gadale (JM)

For Appellant: Shri Jeet Kamdar
For Respondent: Shri B. Bagchi
Hearing: 30.11.2022Pronounced: 31.01.2023

The revenue has filed this appeal challenging the order dated 2013-14 passed by Ld CIT(A), NFAC, Delhi and it relates to the assessment year 2013- 14.

2.

We notice that the impugned appellate order has been passed by Ld CIT(A) against the assessment order dated 21.12.2018 passed by the assessing officer u/s 143(3) r.w.s 263 of the Act in pursuance of directions given by Ld PCIT in his revision order dated 28.3.2018 passed u/s 263 of the Act.

3.

The Ld CIT(A) noticed that the above said revision order passed by Ld PCIT was challenged by the assessee before the Tribunal and the ITAT, vide his order dated 31.05.2022 passed in has quashed the revision order passed by Ld PCIT. Accordingly, the Ld PCIT held that the assessment order passed by AO in pursuance of the revision order shall

2 Play Games 27X7 become redundant. Accordingly he dismissed the appeal proceedings. The revenue is aggrieved,

4.

We heard the parties and perused the record. The impugned assessment order has been passed by the AO u/s 143(3) r.w.s. 263 of the Act in order to give effect to the revision order passed by Ld PCIT. The above said revision order has since been quashed by ITAT and hence the impugned assessment order shall become nullity in the eyes of law. Hence the Ld CIT(A) was right in law in holding that the appeal proceedings before him is liable to be dismissed, meaning thereby, the appeal of the assessee before him was allowed. Accordingly, we do not find any reason to interfere with the order passed by him.

5.

In the result, the appeal filed by the revenue is dismissed.

Pronounced in the open court on 31.1.2023.

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