THE ITO, WARD-1 (2) (1), RAJKOT-GUJARAT vs. SHRI INDRAJITSINH BALUBHAI DABHI, GONDAL

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ITA 215/RJT/2016Status: DisposedITAT Rajkot01 February 2018AY 2009-102 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have allowed the assessee's appeal for statistical purposes and quashed the assessment order. This is because the jurisdiction for the assessment order was extinguished when the CIT's section 263 order was set aside by the ITAT.

What were the facts?

The Revenue appealed an order where the CIT(A) treated the assessee's appeal as infructuous. This was because the original assessment order, passed under section 143(3) r.w.s 263, was rendered unsustainable after the ITAT quashed the CIT's section 263 order.

What were the issues?

Whether an assessment order passed under section 143(3) r.w.s 263 is sustainable after the section 263 order is quashed 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, RAJKOT

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

For Respondent: Shri Jitendra Kumar, CIT-DR, Shri D.M. Rindani, AR
Hearing: 15/01/2018Pronounced: 01/02/2018

PER RAJPAL YADAV, JUDICIAL MEMBER: Present appeal is directed at the instance of Revenue against order of the ld.CIT(A), Rajkot dated 16.3.2016 passed for the Asstt.Year 2009-2010.

2.

It emerges out from the record that originally an assessment order was passed under section 143(3) on 14.11.2011. The ld.Commissioner took cognizance under section 263 of the Income Tax Act and held that order passed by the AO is erroneous and prejudicial to the interest of the Revenue. The ld.CIT has set aside this assessment order on 19.3.2014 vide order passed under section 263. In pursuance of CIT’s order dated 19.3.2014 the AO has passed impugned order on 30.3.2015 under section 143(3) r.w.s 263 of the Act. This order was challenged before the ld.CIT(A). In the meanwhile, the

ITA No.215/RJT/2016 2 assessee has challenged order of the ld.Commissioner passed under section 263 vide ITA No.245/RJT/2014. The Tribunal has allowed appeal of the assessee and quashed the order of the ld.Commissioner dated 19.3.2014 passed under section 263. The ld.CIT(A) in the impugned order observed that since the very jurisdiction infused in the AO by virtue of order under section 263 has been extinguished after order of the ITAT, therefore, this impugned assessment order become infructous. The ld.CIT(A) did not adjudicate the appeal and observed that it became infructous.

3.

On due consideration of the above facts, we are of the view that the ld.CIT(A) ought to have allowed appeal of the assessee for statistical purpose, and should have quashed the assessment order because jurisdiction infused in the AO by way of order passed under section 263 was extinguished. This assessment order is not sustainable. But to our mind, there cannot be any grievance to the Revenue if the ld.CIT(A) has treated appeal of the assessee as infructous after making the above observation. In any case, the assessment order passed under section 143(3) r.w.s 263 of the Act is not sustainable and all these proceedings have become redundant after order of the ITAT passed in ITA No.245/RJT/2014. With the above observation, this appeal is disposed off.

4.

In the result, the appeal of the Revenue is disposed off. Order pronounced in the Court on 1st February, 2018 at Ahmedabad.

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

Ahmedabad; Dated 01/02/2018

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