ASSISTANT COMMISSIONER OF INCOME TAX,, PUNE vs. PUSHPAK STEEL INDUSTRIES PVT.LTD,, PUNE

आदेश / ORDER PER ANIL CHATURVEDI, AM :

This appeal filed by the Revenue is emanating out of the order of 1. Commissioner of Income Tax (Appeal) – 9, Pune dated 05.10.2016 for A.Y. 2009-10.

“Whether on the facts and circumstances of the case, the CIT(A) was justified on deleting the addition on the ground that Hon’ble ITAT has quashed the order of 263 and therefore the order u/s 143(3) rws 263 has become void, when the order of the Tribunal is not reached upon its finality from the Dept. as to whether said decision shall be contested or not before Hon’ble High Court ?

wherein the AO accepted the returned income. Subsequently, the

assessment order was reviewed by Ld. CIT u/s 263 of the Act and vide

order dated 26.03.2014 passed u/s 263 of the Act, he set aside the original

assessment order passed by AO u/s 143(3) of the Act. Aggrieved by the

order of Ld.CIT passed u/s 263 of the Act, assessee preferred appeal before

the Tribunal. He submitted that the Co-ordinate Bench of the Tribunal

vide order dated 16.09.2016 in ITA No.763/PN/2014 has held that

revisionary proceedings exercised by Ld.CIT to be not correct and

accordingly set aside the order of Ld.CIT. He placed on record the copy of

the aforesaid order of the Tribunal and pointed to the relevant findings. He

therefore submitted that when the order of Ld.CIT passed u/s 263 itself

has been set aside by the Tribunal, the consequential order passed u/s

143(3) r.w.s. 263 of the Act does not survive and Ld.CIT(A) has rightly

annulled the order. He thus supported the order of Ld.CIT(A). Ld. D.R. on

the other hand did not controvert the submissions made by Ld.A.R. but

however supported the order of AO.

record. It is an undisputed fact that original assessment order u/s 143(3)

of the Act was passed by AO on 27.12.2011. Thereafter, Ld.CIT vide order

dated 26.03.2014 passed u/s 263 of the Act wherein he set aside the

assessment order passed by the AO u/s 143(3) of the Act and directed the

AO to reframe the assessment as per the directions contained therein.

Consequent to order of Ld.CIT passed u/s 263, AO framed assessment u/s

143(3) r.w.s. 263 vide order dated 30.09.2014. Against the order passed

by Ld.CIT u/s 263, assessee carried the matter before the Tribunal. The

Co-ordinate Bench of the Tribunal in ITA No.763/PUN/2014 order

dt.16.09.2016 had held that the revisionary proceedings exercised by

Ld.CIT to be not correct and therefore had set aside the order passed by Ld.CIT u/s 263(1) of the Act. In such a situation, when the original order of Ld.CIT passed u/s 263 of the Act has been set aside, the consequential order passed by the AO u/s 143(3) r.w.s. 263 of the Act does not survive. The Ld.CIT(A) has thus rightly held the assessment order passed u/s 143(3) r.w.s. 263 of the Act on the basis of order of Ld.CIT to be void. We do not find any fallacy in the findings of Ld. CIT(A) and thus, the ground of the Revenue is dismissed.

Order pronounced on 12th day of July, 2019.

Sd/- Sd/- (VIKAS AWASTHY) (ANIL CHATURVEDI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER

पुणे Pune; �दनांक Dated : 12th July, 2019. Yamini

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to :

आदेशानुसार/ BY ORDER

// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.