DEPUTY COMMISSIONER OF INCOME TAX, GURGAON vs. AGILUS PATHLABS PRIVATE LIMITED (EARILER KNOWN AS SRL DIAGNOSTICS PVT LTD, DELHI

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)] dated 27.05.2024, for Assessment Year 2013-14.

Shri Karanjot Singh Khurana, appearing on behalf of the assessee at the outset submitted that the present appeal arises from assessment order dated 31.10.2018 passed u/s. 143(3) r.w.s. 263 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). The order passed by the Principal Commissioner of (AY 2013-14) Income Tax (PCIT) u/s.263 of the Act dated 20.02.2018 was challenged by the assessee before the Tribunal in ITA No. 1528/Mum/2018. The Tribunal vide order dated 08.01.2021 set aside the order passed by the PCIT u/s. 263 of the Act. Once the order u/s. 263 of the Act has been set aside by the Tribunal, the subsequent proceedings arising there from are vitiated. The CIT(A) allowed appeal of the assessee on this very reason.

Per contra, Shri Om Prakash representing the department prayer for time to verify the facts in the case.

Both sides heard, orders of the authorities below examined. The present appeal by the Revenue emanates from the assessment order passed in u/s. 143(3) r.w.s. 263 of the Act. The order passed by the PCIT in assessee’s case u/s. 263 of the Act was subject matter of challenge before the Tribunal in (supra). The Tribunal vide order dated 08.01.2021 quashed the order of PCIT passed u/s. 263 of the Act. Once the foundation of assessment order dated 31.10.2018 is eroded, the consequential proceedings arising from the said order are nonest. The CIT(A) vide impugned order has rightly allowed appeal of assessee for this very reason. We see no infirmity in the impugned order, hence, the same is upheld.