ACIT-2(1)(1), MUMBAI vs. BSE LTD, MUMBAI

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ITA 2442/MUM/2024Status: DisposedITAT Mumbai16 January 2025AY 2015-16Bench: SHRI B.R. BASKARAN (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that if a revision order is quashed by the Tribunal, the assessment order passed in consequence thereof collapses and becomes nullity. Therefore, the Ld CIT(A) was correct in allowing the assessee's appeal.

What were the facts?

The revenue filed an appeal against an order of the Ld CIT(A) which had quashed a revision order. The assessing officer had passed an assessment order based on the said revision order. The ITAT had previously quashed the revision order.

What were the issues?

Whether an assessment order passed in consequence of a quashed revision order is valid.

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 BENCH “B”, MUMBAI

Before: SHRI B.R. BASKARAN & SHRI RAJ KUMAR CHAUHAN

For Appellant: Ms. Rajeshwari Menon, Sr. DR
For Respondent: Ms. Niyati Parikh
Hearing: 18/10/2024Pronounced: 16/01/2025

PER B.R. BASKARAN, ACCOUNTANT MEMBER :

1.

The revenue has filed this appeal challenging the order dated 13-03- 2024 passed by Ld CIT(A), NFAC, Delhi and it relates to the assessment year 2015-16.

2.

At the outset, the Ld A.R submitted that the present appeal arises out of the order passed by Ld. CIT(A) against the assessment order passed by the assessing officer u/s 143(3) r.w.s 263 of the Act in order to give effect the revision order dated 30-01-2019 passed by Ld PCIT u/s 263 of the Act. He submitted that the assessee had challenged the above said revision order by filing appeal before the ITAT and the Tribunal, vide its order dated 04-10- 2019 passed in has quashed the revision order of PCIT.

BSE Limited 3. In the mean time, the assessing officer had completed the assessment u/s 143(3) r.w.s 263 of the Act. The assessee challenged the same by filing appeal before Ld CIT(A). The assessee brought to his notice the order dated 04-10-2019 passed by the Tribunal, wherein the revision order had already been quashed. Accordingly, the Ld CIT(A) has allowed the appeal of the assessee by passing the following order:- “As the revision order passed u/s 263 of the Act stands quashed, the order of the Assessing Officer passed u/s 143(3) r.w.s 263 of the Act dated 29-12-2017 in compliance of the above 263 order, does not exist in the eyes of law and becomes infructuous.” The Ld A.R submitted that the decision rendered by Ld CIT(A) is perfectly in accordance with law and accordingly, submitted that the same does not call for any interference.

4.

The Ld DR, on the contrary, submitted that the revenue might have challenged the order passed by the ITAT before Hon’ble High Court of Bombay.

5.

We have heard rival contentions and perused the record. We notice that the assessing officer has passed the assessment order u/s 143(3) r.w.s 263 of the Act in consequent to the revision order passed by the PCIT u/s 263 of the Act, which has since been quashed by the Tribunal. There should not be any dispute with regard to the proposition of law that, if the above said revision order is quashed by the Tribunal, then the very foundation on which the impugned assessment order was passed will get collapsed and in that case, the said order shall become nullity in the eyes of law. Accordingly, we are of the view that the Ld CIT(A) has rightly allowed the appeal of the assessee taking note of the above position of law.

6.

The Ld D.R submitted that the order passed by the Tribunal against the revision order might have been challenged before Hon’ble High Court of Bombay. It is not shown to us that the order dated 04-10-2019 passed by the Tribunal against the revision order has been stayed by the Hon’ble High Court. Accordingly, the order passed by the Tribunal shall prevail till the BSE Limited time it is either stayed or quashed by a higher forum. In case, if the order passed by the Tribunal is reversed by the Hon’ble High Court in future, then the revenue is at liberty to move appropriate application to revive this appeal.

7.

In the result, the appeal filed by the revenue is dismissed. Order pronounced in the open court on 16th January, 2025.

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