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Facts
The assessee filed an appeal before the Tribunal against an order of the CIT(A) which confirmed the assessment order. The appeal was filed with a delay of 80 days, which was condoned by the Tribunal.
Held
The Tribunal held that the High Court of Madras had quashed the original assessment order. Therefore, the CIT(A) order confirming a non-existent assessment order was also bad in law and consequently quashed.
Key Issues
Whether the CIT(A) was justified in confirming the assessment order when the original assessment order was quashed by the Hon'ble High Court.
Sections Cited
143(3), 143(3A), 143(3B)
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Before: Shri M. Balaganesh & Shri S.S. Viswanethra Ravi
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 19.03.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2018-19.
We find that this appeal is filed with a delay of 80 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.
The assessee raised 4 grounds of appeal
amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the assessment order, when the order passed by the Assessing Officer is non-est in view of the decision of the Hon’ble High Court of Madras in WP No. 8440 of 2021 and W.M.P. Nos. 8984 & 8987 of 2021.
4. We note that against the assessment order passed under section 143(3) r.w.s. 143(3A) & 143(3B) of the Act dated 26.02.2021, the assessee filed W.P. before the Hon’ble High Court of Madras. On perusal of the decision in WP No. 8440 of 2021 and W.M.P. Nos. 8984 & 8987 of 2021 dated 06.07.2023, placed on record, we note that the Hon’ble High Court of Madras was pleased to hold as under:
10. I find merits in the submission of the petitioner. The impugned order is unsustainable. Therefore, this writ petition deserves to be allowed.
11. Considering the above, this writ petition is allowed by directing the respondent to pass a fresh order on merits within a period of 75 days from the date of receipt of this order. The respondent shall also serve a copy of the draft assessment order and show-cause notice on the petitioner within a period of 15 days from the date of receipt of this order. The petitioner shall file reply to the show cause notice within a period of 30 days thereafter. The 3 respondent shall pass thereafter appropriate orders on merits, within a period of 30days. Needless to state before passing such order, the petitioner shall be heard either in person or through Video Conference as per the prevailing practice. No costs. Consequently, connected miscellaneous petitions are closed.
5. We note that pending adjudication of the WP, the assessee preferred an appeal before the ld. CIT(A) and the ld. CIT(A) dismissed the appeal vide order dated 19.03.2025.
6. We note that the Hon’ble High Court of Madras, vide order dated 06.07.2023 quashed the assessment order passed under section 143(3) r.w.s. 143(3A) & 143(3B) of the Act dated 26.02.2021 giving liberty to the Assessing Officer to pass appropriate order on merits and relevant paras are reproduced herein above. The ld. AR submits that during the course of appellate proceedings, the same was informed to the ld. CIT(A), but, not considering the decision of the Hon’ble High Court of Madras, passed the impugned order dated 19.03.2025 by confirming the view taken by the Assessing Officer in the assessment order dated 26.02.2021, which is not in existence by the order of the Hon’ble High Court of Madras. Since the assessment order passed by the Assessing Officer has no legs to stand in view of the decision of the Hon’ble High Court, the impugned order passed by the ld. CIT(A) stands quashed.