FRIENDS AUTOMOBILE ENGINEERS,PURNEA vs. ACIT, CIRCLE-3(1), PURNEA

PDF · subscribers
ITA 2/PAT/2023Status: DisposedITAT Patna22 July 2024AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) dismissed the appeal mechanically without applying its mind. The revision order directed a de novo assessment, meaning all issues were open for consideration by the Assessing Officer and the CIT(A).

What were the facts?

The assessee's appeal was dismissed by the CIT(A) without considering the merits. The CIT(A) believed the Assessing Officer merely followed a revision order under Section 263 and that the revision order itself was not appealable.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal without adjudicating on the merits, given that the revision order directed a fresh assessment.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “PATNA BENCH, PATNA

Before: Shri Sanjay Garg & Dr. Manish Borad

order : July 22, 2024 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 09.12.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

2.

The assessee is aggrieved by the action of the CIT(A) in dismissing the appeal of the assessee in a mechanical manner without any discussion on merits.

3.

In this case, earlier a scrutiny assessment order u/s 143(3) of the Act was passed on 31.08.2016. Thereafter, the ld. Principal Commissioner of Income Tax (in short, the ‘PCIT’) exercised his revision jurisdiction u/s 263 of the Act and set aside the assessment order for Assessment Year: 2014-15 Friends Automobile Engineers de novo assessment vide his order dated 29.03.2019. The concluding lines of the order of the ld. PCIT are reproduced as under:

1.

I am of the considered view that the A.O had not made proper inquiries on correctness of various expenses, assessment order passed u/s 143(3) of the Act on 20.12.2016 is erroneous and prejudicial to the interest of revenue within the meaning of sec. 263 of the Act and accordingly the same is set aside with a direction to pass assessment order afresh after making proper inquiries, necessary verifications and investigation on the foregoing mentioned issue(s).

3.1 Thereafter, a fresh assessment order dated 13.11.2019 was passed by the Assessing Officer u/s 143(3) r.w.s 263 of the Act assessing the income of the assessee at Rs.1,35,74,600/- as against disclosed income in the Income Tax Return as Rs.97,61,550/-.

3.2 Being aggrieved by the said order of the Assessing Officer, the assessee preferred appeal before the CIT(A), however, the ld. CIT(A) dismissed the appeal of the assessee observing as under:

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →