ITO, WARD-3(1), KOLKATA, KOLKATA vs. SUBHLABH STEELS PRIVATE LIMITED, KOLKATA

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ITA 74/KOL/2024Status: DisposedITAT Kolkata20 March 2025AY 2013-14Bench: the Ld. CIT(A) which is the impugned order in appeal before the Tribunal. It was fairly agreed by the Ld. CIT, DR that the order passed on 26.03.2016 was the subject matter of an appeal before the Tribunal in ITA No. 207/Kol/2018 and vide an order dated 20.03.2020 the order u/s.263 has been quashed.2 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The ITAT noted that the original revision order under Section 263, which was the foundation for the consequential assessment order, had already been quashed by the Tribunal in a separate appeal. Since the basis for the impugned order no longer existed and the CIT(A) had granted relief, the revenue's appeal was dismissed.

What were the facts?

An assessment order under Section 143(3) was revised under Section 263 of the Income Tax Act, leading to a consequential assessment order. This consequential order was challenged before the Ld. CIT(A), who granted relief to the assessee. The Revenue then appealed the CIT(A)'s order to the ITAT.

What were the issues?

Whether the consequential assessment order and the relief granted by the CIT(A) could be sustained, given that the foundational revision order under Section 263 had previously been quashed by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHI

For Respondent: Shri P. N. Barnwal, CIT, DR
Hearing: 20.03.2025Pronounced: 20.03.2025

Present for: Appellant by : N o n e Respondent by : Shri P. N. Barnwal, CIT, DR Date of Hearing : 20.03.2025 Date of Pronouncement : 20.03.2025 O R D E R Per Bench : This appeal has been filed by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2023- 24/1053959506(1) dated 26.06.2023 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2013-14.

2.

None appeared on behalf of the assessee and Shri P.N. Barnwal, Sr. DR appeared on behalf of the revenue.

3.

At the time of hearing it was submitted by the Ld. CIT, DR that the original assessment order u/s. 143(3) had been passed on 09.02.2016. This order was subject matter to the revision u/s. 263 of the Act dated 26.03.2018. It was the submission that the consequential order has been Subhlabh Steels Pvt. Ltd., AY: 2013-14 passed u/s. 143(3) r.w.s. 263 on 30.08.2018, which was the subject matter of the appeal before the Ld. CIT(A) which is the impugned order in appeal before the Tribunal. It was fairly agreed by the Ld. CIT, DR that the order passed on 26.03.2016 was the subject matter of an appeal before the Tribunal in and vide an order dated 20.03.2020 the order u/s. 263 has been quashed.

4.

We have considered the submission of the Ld. CIT, DR and as it is noticed that the very assessment order dated 30.08.2018 which is the order against which the impugned order of the Ld. CIT(A) has been quashed, the very foundation no more exists. Consequently, the order of the Ld. CIT(A) and that of the Assessing Officer passed u/s. 143(3) r.w.s. 263 dated 30.08.2018 stand quashed. However, as this is a revenue appeal and as it is noticed that the Ld. CIT(A) has already granted relief to the assessee, we find no reason to interfere in the order of the Ld. CIT(A). Consequently, the appeal of the revenue stands dismissed.

5.

In the result, appeal of the revenue is dismissed.

Order dictated and pronounced in the open court.

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