DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE -2,, AURANGABAD vs. M/S. OM SAI RAM STEEL AND ALLOYS PVT.LTD,, JALNA

This is an appeal filed by the Revenue directed against the order of ld. Commissioner of Income Tax (Appeals)-1, Aurangabad [‘the CIT(A)’] dated 12.09.2018 for the assessment year 2011-12.

This is a recalled matter. The Tribunal vide order dated 26.04.2023 in M.A. No.179/PUN/2022 arising out of appeal in for the assessment year 2011-12 had recalled the appeal on being satisfied that the impugned addition was made on account of the audit objection. The factual background of the case is as under : The assessee is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of manufacturing of Billets and TMT Bars. The assessee had filed the Return of Income for the assessment year 2011-12 on 30.09.2011 declaring total income of Rs.59,66,290/-. Against the said return of income, the assessment was completed by the Assessing Officer vide order dated 07.03.2014 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at a total income of Rs.1,40,53,910/-. Subsequently, on review of the assessment record, the ld. PCIT, Aurangabad in exercise the power vested with him u/s 263 of the Act had set-aside the assessment order to the file of the Assessing Officer to re-do the assessment on the ground that the Assessing Officer had failed to invoke the provisions of section 50C of the Act in respect of land at Survey No.44 and 45 at Jalna sold on 18.10.2010. Pursuant to the order passed by the ld. PCIT, consequential assessment order was passed by the Assessing Officer vide order dated 29.12.2016 passed u/s 143(3) r.w.s. 263 after making addition of Rs.11,62,500/- u/s 50C of the Act. While matter ITAT vide order dated 01.06.2018 in ITA No.7146/PUN/2016 had quashed the order of revision passed by the ld. PCIT u/s 263 of the Act. 3. The assessee preferred an appeal before the ld. CIT(A) against the assessment order passed u/s 143(3) r.w.s. 263 on 29.12.2016. On appeal before the ld. CIT(A), the ld. CIT(A) quashed the consequential assessment order dated 29.12.2016 passed u/s 143(3) r.w.s. 263 of the Act since the revision order passed u/s 263 dated 29.03.2016 had been quashed by the ITAT. 4. Being aggrieved by that order of the ld. CIT(A), the Revenue is in appeal before us in ITA No.1847/PUN/2018, which was originally dismissed by this Tribunal vide order dated 29.08.2019 on low tax effect. However, the Tribunal in MA No.179/PUN/2022 had recalled the appeal on 26.04.2023. That is how the matter had come up before us in the present appeal. 5. It had been brought to our notice that as on today the order passed by this Tribunal quashing the order of revision u/s 263 is still pending before the Hon’ble Bombay High Court. Therefore, when the foundation for consequential order no longer survives, the consequential order cannot be sustained in the eyes of the law.