SHRI BIPINBHAI NARARNBHAI PATEL,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-2(2)(1), AHMEDABAD

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ITA 2834/AHD/2016Status: DisposedITAT Ahmedabad11 September 2018AY 2009-102 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the foundation for the assessment order (the section 263 order) was extinguished, the assessment order itself was invalid. Therefore, the assessment order and the CIT(A)'s order upholding it were vacated.

What were the facts?

The assessee's assessment order was passed under section 143(3) r.w.s. 263. The assessee had previously challenged the section 263 order before the Tribunal. The Tribunal had quashed the section 263 order.

What were the issues?

Whether an assessment order passed in pursuance of a quashed revisionary 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, AHMEDABAD - BENCH ‘C’

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

For Appellant: Shri M.S. Chhajad, AR
For Respondent: Shri B.P. Srivastva, Sr.DR
Hearing: 10/09/2018Pronounced: 11/09/2018

आदेश/O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER:

Assessee is in appeal before the Tribunal against order of ld.CIT(A)-10, Ahmedabad dated 16.8.2016 passed for the assessment year 2009-10.

2.

The ld.counsel for the assessee at the very outset submitted that impugned assessment order was passed on 28.1.2015 under section 143(3) r.w.s. 263 of the Income Tax Act, 1961. In other words, this order was passed in pursuance of order of ld.Commissioner dated 25.3.2014 passed under section 263 of the Act. Appeal against this

ITA No.2834/Ahd/2016

order has been dismissed by the ld.CIT(A) vide impugned order dated 16.8.2016. He submitted that order of the ld.Commissioner passed under section 263 was challenged by the assessee before the Tribunal in ITA No.935/Ahd/2014. The Tribunal has quashed 263-order. Therefore, there is no foundation to pass the assessment order impugned in the present appeal. The ld.DR was unable to controvert this contention of the ld.counsel for the assessee. The order of the Tribunal in ITA No.935/Ahd/2014 dated 261.6.2017 has been placed on record.

3.

On due consideration of the above facts, we are of the view that since very foundation for passing this assessment order has been extinguished by quashing of 263-order at the end of the tribunal. There could not be any proceedings in pursuance of that order. Therefore, we have to vacate the assessment order impugned hereinunder. We allow the appeal of the assessee and set aside order of the ld.CIT(A) as well as of the AO.

4.

In the result, appeal of the assessee is allowed.

Order pronounced in the Court on 11TH September, 2018 at Ahmedabad.

Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER

Ahmedabad; Dated 11/09/2018

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