SOWPARNIKA RETAIL PRIVATE LIMITED ,BANGALORE vs. PR. COMMISSIONER OF INCOME TAX, BANGALORE -1, BANGALORE

PDF · subscribers
ITA 1521/BANG/2025Status: DisposedITAT Bangalore20 August 2025AY 2021-22Bench: SHRI LAXMI PRASAD SAHU (Accountant Member), SHRI KESHAV DUBEY (Judicial Member)1 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The assessee's counsel submitted that a consequential assessment order had been passed without additions, making the appeal academic. The revenue had no objection. Therefore, the appeal was dismissed as withdrawn.

What were the facts?

The assessee filed a return declaring a business loss. The assessment was completed accepting the returned income. The PCIT set aside the assessment order under Section 263, holding it erroneous and prejudicial to revenue for not examining Section 14A disallowance and lower TDS deduction.

What were the issues?

Whether the PCIT erred in assuming jurisdiction under Section 263 without demonstrating the assessment order to be erroneous and prejudicial, particularly concerning Section 14A and TDS deductions. Whether the appeal became academic due to subsequent developments.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 144B,Section 14A,Section 194J,Section 197B,Section 56,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B’’ BENCH: BANGALORE

Before: SHRI LAXMI PRASAD SAHU & SHRI KESHAV DUBEY

Hearing: 19.08.2025Pronounced: 20.08.2025

PER KESHAV DUBEY, JUDICIAL MEMBER:

1.

This appeal at the instance of the assessee is directed against the order of ld. PCIT, Bangalore-1 dated 24.3.2025 vide DIN & Order No. ITBA/REV/F/REV5/2024-25/1074955507(1) passed u/s 263 of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2021-22.

2.

The assessee has raised the following grounds of appeal:-

3.

Brief facts of the case are that the assessee company had filed return of income for the Asst. year 2021-22 on 7.3.2022 declaring business loss of Rs.8,47,73,529/- Subsequently, the case was selected for scrutiny and the assessment was concluded vide order dated 22.12.2022 passed u/s 143(3) r.w.s. 144B of the Act by accepting the returned income. Thereafter, the ld. PCIT Bangalore- 1 had set aside the assessment order of AO dated 22.12.2022 by holding that the order is erroneous and prejudicial to the interest of the revenue in so far as the AO has passed the order without Sowparnika Retail Private Limited, Bangalore Page 5 of 6 examining the reasons for inadmissible expenses reported u/s 14A of the Act not being disallowed in computation of income and without verification of the reasons for lower deduction of TDS and accordingly directed the AO to pass fresh order after carrying out the necessary verification and examination and enquiring into the claim of disallowance u/s 14A of the Act and verify the reasons for lower deduction of TDS.

4.

Aggrieved by the order dated 24/03/2025 passed u/s 263 of the Act, the assessee has filed the present appeal before this Tribunal.

5.

Before us, at the outset, the ld. A.R. of the assessee vehemently submitted that the consequential assessment order as per the direction of ld. PCIT had already been passed and no addition has been made by the AO. Accordingly, prayed that as the present appeal became academic & hence the appeal may be permitted to be withdrawn. The ld. D.R. also expressed no objection if we permit the assessee to withdraw its appeal. Thus, as per the request of the ld. A.R. of the assessee, we dismiss this appeal as withdrawn.

6.

In the result, appeal of the assessee is dismissed as withdrawn.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →