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Facts
The Revenue appealed against the CIT(A)'s order which allowed the assessee's appeal. The CIT(A) had allowed the appeal on the grounds that the assessment order was based on a PCIT order u/s. 263 which was previously set aside by the Tribunal.
Held
The Tribunal upheld the order of the CIT(A), stating that once the foundational order under Section 263 was set aside, the consequential assessment proceedings were vitiated and therefore non-est.
Key Issues
Whether the assessment order is vitiated if the order passed by the Principal Commissioner of Income Tax under Section 263 was previously set aside by the Tribunal.
Sections Cited
143(3), 263
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI
(A.Y.2013-14) Deputy Commissioner of Income Tax, HSIIDC Building Office, Circle-1, 5th floor, ...... अपीलाथ�/Appellant Udyog Vihar, Phase-V, Haryana 122016 बनाम Vs. Agilus Pathlabs P. Ltd., (Earlier Known as SPL Diagnostics P. Ltd.) 74, GF Paschimi Marg, Opp. C Block Market, Vasant Vihar-1, South Delhi 110057 ..... �ितवादी/Respondent PAN: AAACT-9117-E Assessee by : S/Shri Karanjot Singh Khurana, Devashish Jain, Dhananjai Dhokalia & S. Sriram, Advocates Department by : Shri Om Prakash, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 22.07.2025 घोषणा क� ितिथ/ Date of pronouncement : : 22.07.2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
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.