DCIT CIRCLE-1, NOIDA vs. JE ENERGY VENTURE PVT LTD, NOIDA

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ITA 1562/DEL/2020Status: DisposedITAT Delhi29 July 2022AY 2012-132 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that if the revisional order under Section 263 is invalid, the consequential assessment order under Section 143(3) also loses its foundation. Therefore, the Revenue's appeal cannot be entertained.

What were the facts?

The Revenue appealed against an assessment order passed under Section 143(3) r.w. Section 263 of the Income Tax Act. The assessee argued that the revisional order under Section 263 was quashed by a co-ordinate bench, rendering the assessment order invalid.

What were the issues?

The primary issue was the validity of the assessment order when the underlying revisional order under Section 263 was quashed. The Tribunal considered whether the appeal of the Revenue could survive without a valid jurisdictional basis.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C” DELHI

Before: SHRI KUL BHARAT & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Rishabh Malhotra, Adv
For Respondent: Shri Rajesh Kumar, CIT-DR

PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)- I, Noida [‘CIT(A)’ in short], dated 14.02.2020 arising from the assessment order dated 11.12.2017 passed by the Assessing Officer (AO) under Section 143(3) r.w. Section 263 of the Income Tax Act, 1961 (the Act) concerning AY 2012-13.

2.

As per its grounds of appeal, the Revenue has challenged certain additions or disallowances made in the assessment framed by the Assessing Officer under Section 143(3) r.w. Section 263 of the Act which were reversed by the CIT(A).

3.

When the matter was called for hearing, the ld. counsel for the assessee submitted that the Co-ordinate Bench of Tribunal in order dated 4th July, 2018 has quashed the revisional order passed under Section 263 of the Act. It was thus pointed out that in the absence of any jurisdiction under Section 263, the consequential assessment order under Section 143(3) under challenge does not survive either. As a corollary, the present litigation propagated on behalf of the Revenue pales into insignificance and has no leg to stand.

4.

The ld. DR for the Revenue fairly admitted the factual position. In the light of the submissions made on behalf of the assessee and the appellate order of the Co-ordinate Bench in revisional proceedings as noted above, we find that in the absence of any valid jurisdiction exercised by the revisional commissioner, the order passed under Section 143(3) r.w. Section 263 has lost its very foundation. Hence, the litigation arising from such order has lost its substratum. The Revenue appeal for this reason cannot be entertained. Thus, the appeal of the Revenue is dismissed.

5.

In the result, the appeal of the Revenue is dismissed.

Order was pronounced in the open Court on 29/07/2022.

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