DY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-8(3), MUMBAI, MUMBAI vs. M/S S.D. CORPORATION PVT LTD, MUMBAI

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ITA 1039/MUM/2022Status: DisposedITAT Mumbai30 June 2022AY 2014-152 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, stating that the assessment order, based on a quashed revision order, lacked legal foundation. The pendency of a further appeal to the High Court did not change this position.

What were the facts?

The Assessing Officer appealed against the CIT(A)'s order which held the assessee's appeal infructuous. This was because the revision order, which led to the assessment, had been set aside by a co-ordinate bench of the ITAT.

What were the issues?

Whether an assessment order based on a revision order that has been set aside can survive. The impact of a further appeal to the High Court on the validity of the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI B BENCH, MUMBAI

Per Pramod Kumar VP 1. This is an appeal filed by the Assessing Officer and is directed against the order dated 25.03.2022 passed by the learned CIT(A) in the matter of assessment u/s. 143(3) r.w.s. 263 of the Income Tax Act 1961, for the assessment year 2014-15. 2. Grievances raised by the Assessing Officer are as follows:-

1.

1. 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding the assessee’s appeal infructuous which does not require adjudication and at the same time allowing appeal for statistical purposes.

2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the appeal statistical purposes without going into any merit & considering the fact that the revenue is in appeal before Hon’ble High Court vide Dt. 26.12.2018, against the Hon’ble ITAT order against order passed by the PCIT u/s. 263 of the Act.

ITA No.: 1039/Mum/2022 Assessment year: 2014-15 Page 2 of 2 3. To adjudicate on this appeal it is sufficient to take note of the fact that the present appeal is in the matter of an assessment framed as result of revision proceedings but then the very order passed by the learned Commissioner, has been set aside by a co-ordinate bench of this Tribunal vide order dated 26.12.2018. Therefore, when the assessment order came up before the learned CIT(A) for adjudication for merits. Learned CIT(A) held that the appeal is infructuous inasmuch as the assessment order does not survive. The Assessing Officer is aggrieved and is in appeal before us.

4.

Having heard the learned Departmental Representative and having perused the material on record, we find that undisputed position that the revision order dated 31.12.2018 as consequence of which impugned assessment was framed has been quashed by a co-ordinate bench order dated 26.12.2018. Accordingly, the very foundation of the impugned assessment does not hold good in law. The mere fact that the Tribunal’s order, quashing the revision order, as an appeal before Hon’ble High Court, does not alter this position. In this view of the matter and bearing in mind entirety of the case the uphold order of the learned CIT(A) and decline to interfere in the matter. In the result the appeal is dismissed. Pronounced in the open court today on the 30th day 5. of June, 2022. Sd/- Sd/- Aby T Varkey Pramod Kumar (Judicial Member) (Vice President) Mumbai, dated the 30th day of June, 2022

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