ACIT, REWARI CIRCLE, HARYANA vs. MEWAT GRIT UDYOG (NOW M/S NKB INFRASTRUCTURE P.LTD), REWARI

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ITA 8502/DEL/2019Status: DisposedITAT Delhi27 June 2022AY 2010-113 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 since the order passed under Section 263 of the Act, which was the basis for the consequential proceedings, has been quashed, the present appeal has become infructuous and cannot survive.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order. The original assessment order was passed under Section 143(3) read with Section 263 of the Income-Tax Act. The CIT's order under Section 263, which led to the present appeal, was subsequently quashed by the Tribunal.

What were the issues?

Whether an appeal arising from consequential proceedings can survive when the order giving rise to those proceedings has been quashed.

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: ‘E’ NEW DELHI

Before: SHRI SAKTIJIT DEY & SHRI ANADEE NATH MISSHRA

For Appellant: Shri RR Singh, Partner
For Respondent: Ms. Garima Sharma, SR. DR, Shri RR Singh, Partner
Hearing: 16.06.2022Pronounced: 27.06.2022

ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: Captioned appeal filed by the Revenue arises out of order dated 08.08.2019 of learned Commissioner of Income-Tax (Appeals), Rohtak, pertaining to assessment year 2010-11.

2.

We have heard Ms. Garima Sharma, learned Departmental Representative and Shri RR Singh, one of the partners of assessee.

The genesis of the present appeal is the order dated 15.03.2016 passed under Section 143(3) read with section 263 of the Income-Tax Act,1961 for the impugned assessment year in pursuance to the directions of learned Commissioner of Income-Tax(CIT) in an order passed under Section 263 of the Act.

3.

Assessee has submitted before us that the order passed under Section 263 of the Act by learned CIT, in the meanwhile, has been quashed by the Tribunal. While admitting the aforesaid factual position, learned Departmental Representative, however, submitted that the impugned order of learned Commissioner (Appeals) preceded the order passed by the Tribunal quashing the order passed under Section 263 of the Act.

4.

Be that as it may, it is a fact on record that the order passed under Section 263 of the Act which gave rise to the consequential proceedings culminating in the present appeal, in the meanwhile, has been quashed by the Tribunal while deciding assessee’s appeal in vide order dated 14.01.2020. Thus, when the order passed under Section 263 of the Act is no more in existence, the present appeal arising out of consequential order passed in pursuance to the directions of learned CIT under Section 263 of the Act, having become infructuous, cannot survive. Accordingly, the appeal is dismissed.

14.

In the result, the appeal is dismissed.

Order pronounced in the open court on 27th June, 2022.

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