DCIT-1(3)(1), MUMBAI vs. DEUTSCHE INDIA PVT. LTD.(EARLIER KNOWN AS 'DBOI GLOBAL SERVICES PVT. LTD.), MUMBAI

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ITA 2500/MUM/2021Status: HeardITAT Mumbai11 July 2022AY 2008-094 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 if the revisionary order under section 263 is set aside, any consequential assessment order passed in pursuance to it becomes infructuous. Therefore, the CIT(A) was correct in quashing the assessment order.

What were the facts?

The revenue appealed against the CIT(A)'s order quashing an assessment order passed under section 143(3) r.w.s. 263. The CIT(A) found the assessment order infructuous because the ITAT had previously set aside the revisionary order under section 263, which was the basis for the subsequent assessment.

What were the issues?

Whether an assessment order passed pursuant to a section 263 revisionary order is valid if the revisionary order itself is set aside. The consequence of setting aside a section 263 order on a subsequent assessment.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 144C(13)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA, JM & SHRI S. RIFAUR RAHMAN, AM

For Appellant: Shri T. Shankar, Ld, DR प्रत्यथीकीओरसे/, Shri Manan, Ld. AR
For Respondent: Shri Manan, Ld. AR

O R D E R

Per Amit Shukla, Judicial Member:

1.

The aforesaid appeal has been filed by the revenue against the impugned order dated 30.08.2021, passed by National Faceless M/s Deutsche India Pvt. Ltd. Appeal Centre (NFAC), Delhi for the quantum of assessment passed u/s 143(3) r.w.s. 263 for AY 2008-09. The grounds of appeal raised by the revenue are as under:-

1. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in quashing the assessment order made in pursuance to order u/s 263 where the appeal of the revenue was pending before the Hon’ble High Court against the order of the Hon’ble ITAT passed against order u/s 263."

2. Here in this case original assessment was passed u/s 143(3) r.w.s. 144C(13) vide order dated 21.10.2012 assessing the total income of Rs. 112,19,40,930/-. Thereafter, Ld. PCIT in his revisionary jurisdiction u/s 263 had set aside the said assessment order vide order dated 26.03.2015. In pursuance to that, Ld. AO has passed order dated 30.03.2016 u/s 143(3) r.w.s. 263 wherein he has made further disallowance of ESOP of Rs. 11,19,35,000/- which was directed by Ld. PCIT to consider the same afresh. Subsequently, the order dated 26.03.2015 passed u/s 263, the Tribunal vide order dated 11.12.2017 had set aside the order of PCIT passed u/s 263 and the matter was decided in favour of the assessee.

M/s Deutsche India Pvt. Ltd. 3. Ld. CIT(A) had noted this facts in para 3 in the following manner:-

3.

Facts of the Case: In the appellant's case, the original order u/s 143(3) of the Act, was passed on 21/10/2012 for the A.Y. 2008-09. The Commissioner of Income Tax passed an order u/s 263 of the Act on 26/03/2015, set aside the original assessment order. The appellant filed an appeal before the Mumbai, Tribunal against the CIT's order passed u/s 263 of the Act. 3.2 Meanwhile, the Assessing Officer passed the order u/s 143(3) r.w.s 263, vide order dated 30/03/2016, by giving effect to the revision order passed u/s 263 of the Act. The appellant filed an appeal against this order u/s 143(3) r.w.s 263 on 21/06/2016. Subsequently, Hon'ble ITAT, Mumbai, vide order dated 11/12/2017 set aside the CIT's orders u/s 263 and decided the issue in favour of the appellant.

4.

Grounds: In view of the jurisdictional ITAT order set aside the order passed by the CIT u/s 263 dated 26/03/2015, the appeal filed against the order u/s 143(3) r.w.s 263 dated 30/03/2016 becomes infructuous. In view of the above, the appeal is dismissed as infructuous.

M/s Deutsche India Pvt. Ltd. 4. Thus, when order u/s 263 itself has been passed, then consequently the order passed by AO in pursuance to order u/s 263 has become infructuous and therefore, Ld. CIT(A) has rightly held the assessment order infructuous. Even the revenue in the grounds has stated that matter is subjudice before the Hon’ble High Court. Accordingly, the ground raised by the revenue is dismissed

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