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Facts
The appeals were filed by the Revenue against orders of the CIT(A) which had cancelled assessment orders. The CIT(A)'s orders were based on the quashing of a revision order u/s 263 by the Tribunal.
Held
The Tribunal held that since the revision order u/s 263 was quashed, the consequent assessment order could not survive. Therefore, the order of the CIT(A) was upheld.
Key Issues
Whether the assessment order passed consequent to a quashed revision order u/s 263 can survive?
Sections Cited
263, 143(3)
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Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI
Before: SHRI OM PRAKASH KANT & MS. KAVITHA RAJAGOPAL
The captioned appeals have been preferred by the Revenue against two separate order, dated 22.01.2025 and 28.11.2024 passed by the National Faceless Assessment Centre, Delhi [ in short the ld CIT(A)] for assessment years 2008-09 and 2009-10 respectively. The facts of both the appeals being identical, both
ALTR International Pvt. Ltd ALTR International Pvt. Ltd 2 & 451/MUM/2025 & 451/MUM/2025 parties agreed to take the appeal for AY 208 parties agreed to take the appeal for AY 208-09 as lead case and 09 as lead case and apply result of said appeal to appeal for AY 2009-10 mutatis apply result of said appeal to appeal for AY 2009 apply result of said appeal to appeal for AY 2009 mutandis.
Briefly stated, facts of the case Briefly stated, facts of the case for AY 2008-09 09 are that the Ld. called for assessment Principal. Commissioner of Income mmissioner of Income-tax (PCIT), called for assessment records and after providing opportunity of being heard to the records and after providing opportunity of being heard to the records and after providing opportunity of being heard to the assessee, cancelled the reassessment order passed by him by way assessee, cancelled the reassessment order passed by him by way assessee, cancelled the reassessment order passed by him by way of revision order dated 23/03/2018 and of revision order dated 23/03/2018 and directed the Assessing directed the Assessing Officer to pass a fresh assessment order. The impugned assessment ss a fresh assessment order. The impugned assessment ss a fresh assessment order. The impugned assessment order has been passed in consequent to the said order u/s 263 of order has been passed in consequent to the said order u/s 263 of order has been passed in consequent to the said order u/s 263 of the Act. Subsequently, the assessee challenged the order u/s 263 of the Act. Subsequently, the assessee challenged the order u/s 263 of the Act. Subsequently, the assessee challenged the order u/s 263 of the Act before the Tribunal and the Tribunal vide its order dated the Act before the Tribunal and the Tribunal vide its order dated the Act before the Tribunal and the Tribunal vide its order dated 21.10.2022 quashed the quashed the order passed u/s 263 of the Act by the order passed u/s 263 of the Act by the PCIT. As the order u/s 263 stand PCIT. As the order u/s 263 stands quashed, the Ld. CIT(A) quashed, the Ld. CIT(A) held the consequent assessment proceedings consequent assessment proceedings as infructuous as infructuous and allowed relief to the assessee observing as under: relief to the assessee observing as under:
7.4.1 The current appeal 7.4.1 The current appeal arises from the assessment order arises from the assessment order dated 30.11.2018 passed u/s 143(3) r.w.s 263. Since, the dated 30.11.2018 passed u/s 143(3) r.w.s 263. Since, the dated 30.11.2018 passed u/s 143(3) r.w.s 263. Since, the order passed u/s 263 has been quashed by the Hon’ble order passed u/s 263 has been quashed by the Hon’ble order passed u/s 263 has been quashed by the Hon’ble ITAT, therefore, consequentially the impugned order passed ITAT, therefore, consequentially the impugned order passed ITAT, therefore, consequentially the impugned order passed u/s 143(3) r.ws 263 does not survive. u/s 143(3) r.ws 263 does not survive.
We have heard rival submissions of the parties and perused heard rival submissions of the parties and perused heard rival submissions of the parties and perused the relevant materials on record the relevant materials on record. The present appeals against the . The present appeals against the order of the Ld. CIT(A) CIT(A) which are arising from the assessment order which are arising from the assessment order passed consequent to the order u/s 263 of the Act passed by the passed consequent to the order u/s 263 of the Act passed by the passed consequent to the order u/s 263 of the Act passed by the ALTR International Pvt. Ltd ALTR International Pvt. Ltd 3 & 451/MUM/2025 & 451/MUM/2025 Ld. PCIT. Since the order passed by the Ld. PCIT u/s 263 of the Act T. Since the order passed by the Ld. PCIT u/s 263 of the Act T. Since the order passed by the Ld. PCIT u/s 263 of the Act itself has been quashed, the consequent assessment order cannot itself has been quashed, the consequent assessment order cannot itself has been quashed, the consequent assessment order cannot survive. Accordingly, we do not find any infirmity in the order of the survive. Accordingly, we do not find any infirmity in the order of the survive. Accordingly, we do not find any infirmity in the order of the Ld. CIT(A) on the issue in dispute on the issue in dispute and uphold his finding. and uphold his finding. The grounds raised by the Revenue in the appeal are accordingly grounds raised by the Revenue in the appeal are accordingly grounds raised by the Revenue in the appeal are accordingly dismissed.
3.1 The facts of the case for AY 2009 The facts of the case for AY 2009-10 being identical , 10 being identical , The grounds raised by the Revenue in grounds raised by the Revenue in the appeal for AY 2009 the appeal for AY 2009-10 are accordingly dismissed. accordingly dismissed.
In the result, both the appe In the result, both the appeals of the Revenue are dismissed. als of the Revenue are dismissed.