HLS ASIA LTD.,NEW DELHI vs. DCIT CIRCLE-12(1), NEW DELHI

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ITA 2217/DEL/2019Status: DisposedITAT Delhi23 November 2022AY 2007-084 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the assessment order, which was the basis for the impugned orders, was framed under Section 143(3) r.w.s 263. Since a previous Tribunal order had quashed the Section 263 orders, the assessment order became non-est.

What were the facts?

The assessee filed two appeals against orders of the CIT(A) for AY 2007-08. One appeal concerned additions made by the AO and confirmed by the CIT(A), while the other related to a penalty levied under Section 271(1)(c).

What were the issues?

The primary issue was the validity of the assessment order passed under Section 143(3) r.w.s 263, given that the Section 263 revisionary order was set aside by a prior Tribunal ruling.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘C’ BENCH,

Before: SHRI N.K. BILLAIYA, & SHRI KUL BHARAT

For Appellant: Shri Gaurav Goel, CA
For Respondent: Shri K.M. Mahesh, CIT- DR
Hearing: 23.11.2022Pronounced: 23.11.2022

Heard together (2 matters)

ITA No. 2217/DEL/2019
ITA No. 2218/DEL/2019

Read from the judgment's own cause title. This page is filed under one of them.

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-

1.

The above captioned two separate appeals by the assessee are preferred against two separate orders of the ld. CIT(A) -22, New Delhi dated 26.12.2018 pertaining to A.Y. 2007-08.

2.

relates to the additions made by the Assessing Officer and confirmed by the ld. CIT(A) and relates to the penalty levied u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'].

3.

At the very outset, the ld. counsel for the assessee drew our attention to the decision of this Tribunal in for Assessment Year 2007-08 by which this Tribunal has set aside the order of the PCIT framed u/s 263 of the Act which is the basis of the impugned assessment order under appeal framed u/s 143(3) r.w.s 263 of the Act.

4.

We have carefully perused the order of this Tribunal in ITA No. 4144/DEL/2014. We find force in the contention of the ld. counsel for the assessee. This Tribunal, in the said order, has held that “the orders passed by the ld. CIT u/s 263 of the Act are not sustainable in the eyes of law. Hence ordered to be quashed”.

5.

Since the foundation has been removed, the assessment order dated 30.11.2012 framed u/s 143(3) r.w.s 263 of the Act becomes non- est and, therefore, all the subsequent orders also become non-est.

6.

In the result, the appeals of the assessee in ITA Nos.

2217/DEL/2019 and 2218/DEL/2019 are allowed.

The order is pronounced in the open court on 23.11.2022.

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