THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), AHMEDABAD vs. M/S. NIRMA LTD., AHMEDABAD

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ITA 549/AHD/2017Status: DisposedITAT Ahmedabad15 January 2019AY 2007-082 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 the subsequent proceedings, stemming from a quashed order, were a nullity in law and thus rendered the Revenue's appeal infructuous. Consequently, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order concerning assessment year 2007-08. The assessee argued that the Pr.CIT's order under section 263, which led to the re-framed assessment, had been quashed by a co-ordinate bench of the Tribunal.

What were the issues?

Whether proceedings arising from a quashed order under Section 263 are legally valid and if the subsequent appeal is maintainable.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR

For Appellant: Shri O. P. Gupta, CIT. D.R, Shri Hemanshu C. Shah

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-9, Ahmedabad (‘CIT(A)’ in short), dated 20.12.2016 arising in the assessment order dated 28.03.2013 passed by the Assessing Officer (AO) under s. 143(3) r.w.s. 263 of the Income Tax Act, 1961 (the Act) concerning assessment year 2007-08.

2.

As per its ground of appeal, the Revenue has impugned the action of the CIT(A) on several grounds.

ITA No. 549/Ahd/17 [DCIT vs. M/s. Nirma Ltd.] A.Y. 2007-08 - 2 - 3. When the matter was called for hearing, the learned AR for the assessee submitted at the outset that the action of the Pr.CIT under s.263 dated 30.03.2012 relevant to AY 2007-08 in question has been quashed by the co-ordinate bench of Tribunal in ITA No.1152/Ahd/ 2012 order dated 31.10.2017. The learned AR accordingly submitted that the subsequent proceedings pursuant to such order is without any basis any longer and are thus a nullity in law.

4.

As pointed out on behalf of the assessee, the present appeal emanates out of the assessment order re-framed pursuant to directions as per order passed by the Pr.CIT under s.263 of the Act which order has since been quashed. The subsequent proceedings arising from a nonest order is ceased to be effacious and thus a nullity without any legal consequences. Consequently, the appeal of the Revenue arising from such order is rendered infructuous and thus requires to be dismissed.

In the result, the appeal of the Revenue is dismissed. 5.

This Order pronounced in Open Court on 15/01/2019

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 15/01/2019 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।

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