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Facts
The Income Tax Appellate Tribunal (ITAT), Rajkot, had previously quashed orders passed under Section 263 of the Income Tax Act for the assessment year 2019-20 for several assessees. The department appealed these decisions. The assessee's counsel submitted that the ITAT's prior order rendered the current appeals infructuous.
Held
The Tribunal held that the earlier order quashing the Section 263 assessments was effective, as there was no stay from the High Court. Consequently, the appeals filed by the revenue were deemed infructuous.
Key Issues
Whether appeals filed by the revenue are infructuous when a prior ITAT order quashed the reassessment proceedings under Section 263, and no stay was obtained from the High Court.
Sections Cited
263
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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & DR. DINESH MOHAN SINHA
, 84 & 86 to 90/Rjt/2026 ACIT v. Chunilal G. Vanik and ors. ORDER Per, Dr. Dinesh Mohan Sinha, JM: 1. Ld. Counsel for the assessee submitted that the Hon’ble ITAT, Rajkot vide order dt. 30th June, 2025 has quashed the order under Section-263 of the Act for assessment year 2019-20 in all these assessees. Therefore, the appeal filed by the department becomes infructuous. All consequential orders/appeals, the order of these Courts becomes infructuous. Since, the department has approached to the High Court against the order passed by the Tribunal but there is no stay of proceedings by the Hon’ble High Court in these matters dt. 30th June, 2025. At present the order passed by the Tribunal is effective therefore we quashed all the orders in appeals of the Revenue as infructuous. In result all the appeals filed by the revenue are dismissed.
Order is pronounced in the open Court Today on 07/04/2026.