GOVINDAM TRUST,MUMBAI vs. ITO (E) WARD 1(3), MUMBAI, CUMBALLA HILLS, PEDDAR ROAD, MUMBAI

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ITA 3174/MUM/2026Status: DisposedITAT Mumbai11 June 2026AY 2016-173 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 held that an appeal against an order passed under Section 143(3) r.w.s. 263 lies before the CIT(A) under Section 246A(1)(a). The CIT(A)'s order refusing to entertain the appeal was set aside.

What were the facts?

The assessee's appeal against an order passed under Section 143(3) r.w.s. 263 was dismissed by the CIT(A) as not maintainable. The CIT(A) believed such appeals should go directly to the ITAT.

What were the issues?

Whether an appeal against an order giving effect to a Section 263 order lies before the CIT(A) or the ITAT directly.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 246A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “G”, MUMBAI

Before: Justice (Retd.) C V Bhadang, Hon’ble & Shri Prabhash Shankar, Hon’ble

For Appellant: Ms Namrata Chande
For Respondent: Shri Kavan Limbasiya, Sr. DR
Hearing: 11.06.2026Pronounced: 11.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “G”, MUMBAI Before Justice (Retd.) C V Bhadang, Hon’ble President & Shri Prabhash Shankar, Hon’ble Accountant Member ITA No. 3174/Mum/2026 for A.Y. 2016-17 Govindam Trust, ITO (E) Ward 1(3), 11, Hague Building, 9, Sprott Road, Vs. Mumbai. Ballard Estate, Mumbai 400 038 PAN AAATG0430C (Appellant) (Respondent) Appellant By : Ms Namrata Chande Respondent By : Shri Kavan Limbasiya, Sr. DR Date of Hearing : 11.06.2026 Date of Pronouncement : 11.06.2026 ORDER Per Justice (Retd.) C V Bhadang, President: This appeal, by the assessee can be disposed of on a short count. In this case, there was an order passed by the learned PCIT under Section 263 of the Income Tax Act, 1961 (‘Act’ for short) dated 09.03.2021. The Assessing Officer (‘AO’ for short) while giving effect to the direction given by learned PCIT under Section 263 of the Act passed an order dated 23.03.2022 under Section 143(3) r.w.s. 263 of the Act. The assessee sought to challenge the said order before the CIT(A). The learned CIT(A) has found that the appeal was not maintainable. According to the learned CIT(A), as the order under Section 263 of the Act could be challenged before the ITAT, no appeal lay before the learned CIT(A) against

2 ITA No. 3174/Mum/2026 Govindam Trust the order passed as a consequence of an order under Section 263 of the Act. The learned CIT(A) has observed as under :-

“2.3 …appeal against a 263 order lies with ITAT directly. This order gives effect to the directions of the Pr CIT contained in the 263 order. Since the original order u/s 263 has to go to ITAT directly (appealable to ITAT directly), the order giving effect to the directions of Pr CIT u/s 263 has also to be clubbed with it. The grounds 1 to 14 deals with technical issues which need to be separately dealt with by the ITAT. The appeal is set aside to the file of ITAT for passing orders.

2.

It is this order which is subject matter of challenge in this appeal.

3.

We have heard parties. Perused record.

4.

The learned AR, on instructions, states that the appellant is not pressing for the challenge to the order dated 09.03.2021, passed u/s. 263 of the Act. Thus, the challenge is restricted to the order passed by the learned CIT(A) refusing to entertain the appeal as being not maintainable. The learned AR has placed reliance on the decision of this Tribunal in Crompton Greaves Ltd., ITA No.1994/Mum/2013 & ITA No.2836/Mum/2014 decided on 01.02.20216 and Sharad Goyal, ITA No. 1510/Mum/2023 decided on 12.10.2023.

5.

The learned DR in all fairness submitted that an appropriate order be passed.

6.

We have considered the circumstances and the submissions made. A co- ordinate bench of this tribunal in case of Crompton Greaves (supra) after considering the relevant provisions and, in particular, Section 246A of the Act, has

3 ITA No. 3174/Mum/2026 Govindam Trust held that an appeal against an order passed under Section 143(3) r.w.s. 263 of the Act shall lie before the CIT(A) under Section 246A(1)(a) of the Act. Yet another Division Bench in the case of Sharad Goyal (supra) had come to the same conclusion. It is not necessary to multiply authorities on the point.

7.

In that view of the matter, we find that the impugned order refusing to entertain the appeal cannot be sustained. The appeal is accordingly allowed. The impugned order is set aside. The appeal filed by the appellant is restored back to the file of the learned CITA for disposal according to law on merits of the impugned additions.

Order pronounced in the open court on 11.06.2026

Sd/- Sd/- [Prabhash Shankar] [Justice (Retd.) C V Bhadang] ACCOUNTANT MEMBER PRESIDENT Mumbai, Dated : 11th June, 2026

SA

Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The PCIT, Mumbai. 4. The CIT 5. The DR, ‘G’ Bench, ITAT, Mumbai BY ORDER

//True Copy// (Assistant Registrar) Income Tax Appellate Tribunal, Mumbai

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