THE DY. CIT., CIRCLE-1(1)(1), VADODARA vs. GUJARAT STATE FERTILIZERS & CHEMICALS LTD., VADODARA

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ITA 2534/AHD/2016Status: DisposedITAT Ahmedabad23 May 2018AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the ITAT had already allowed the assessee's appeal, setting aside the CIT's order. Consequently, the reassessment order passed in consequence of the CIT's order was rendered invalid.

What were the facts?

The Revenue filed an appeal against an order that annulled a reassessment order. The annulment was based on a prior ITAT decision which had set aside the CIT's order and restored the original assessment.

What were the issues?

Whether the reassessment order survives when the order of the CIT under Section 263, which led to the reassessment, has been set aside by the ITAT.

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 “C” BENCH

Before: SHRI WASEEM AHMED & SHRI MAHAVIR PRASAD

For Appellant: Shri T. Sankar, Sr. D.R

PER MAHAVIR PRASAD, JUDICIAL MEMBER

1.

This appeal by the Revenue is directed against the order of the Ld. CIT(A)-1, Vadodara dated 29.07.2016 pertaining to A.Y. 2009-10.

ITA No. 2534/Ahd/2016 2 . A.Y. 209-10 2. Brief facts of the case are that the order u/s 143(3) of the Act was passed in this case on 30.12.2011 determining the total income at Rs. 9,63,46,05,466/-. Subsequently, this assessment order was set aside by the CIT-I, Baroda vide order passed u/s. 263 of the Act on 11.03.2014. The assessment had been set aside on the issues relating to allowance of depreciation of wind mills and obsolete spares and other items written off. The order u/s 143(3) rws 263 of the Act was passed on 20.03.2015 determining the total income at Rs. 96,4,27,53,229/-. This included addition of Rs. 7,22,82,760/- on account of additional depreciation and Rs. 92,66,211/-on account of write off of spares and appeal has been filed against the above said order.

3.

During the course of the appellate proceedings and before ld. CIT(A), appellant submitted that the order passed by the CIT-I, Baroda u/s 263 of the Act has been set aside by the ITAT Ahmedabad Bench vide order dated 31.03.2016 passed in ITA No, 1402/Ahd/2014. A copy of this order was furnished which shows that the ITAT has set aside the order of CIT-I, Baroda and has restored the order of the AO. Consequently, the assessment order passed in consequence to such order u/s 263 also does not survive. Hence, the assessment order passed u/s 143(3) rws 263 of the Act was annulled.

4.

But Department preferred appeal before us by showing that the order of the ITAT bearing order No. 1402/Ahd/2015 dtd 31.03.2016 on order passed u/s 263 of the IT. Act has not been received in this office, the same remains to be decided on merits. In order to keep the matter alive, a second appeal is filed against the order of Ld. CIT(A), wherein the order u/s 143(3) rws 263 of the Act dtd. 20.03.2015 has been annulled.

ITA No. 2534/Ahd/2016 3 . A.Y. 209-10 5. Ld. A.R. has also submitted copy of ITAT order in ITA No. 1402/Ahd/2014 in which assessee’s appeal has been allowed. Now nothing is remained in this matter and this appeal is dismissed as infructuous.

6.

In the result, appeal filed by the Department is dismissed.

Order pronounced in Open Court on 23 - 05- 2018

Sd/- Sd/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 23 /05/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

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