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Facts
The assessee challenged an addition of Rs. 2,32,50,000/- made by the Assessing Officer, confirmed by the CIT(A), regarding unexplained share capital and share premium. This assessment order was passed in compliance with a revisional order by the PCIT under Section 263, which had set aside an earlier assessment.
Held
The Tribunal found that the PCIT's revisional order, which directed the fresh assessment, had itself been quashed by an earlier order of the Co-ordinate Bench of the Tribunal. Consequently, the assessment order passed based on the quashed revisional order became non-est and infructuous, leading to the dismissal of the appeal.
Key Issues
Whether an assessment order, passed in compliance with a revisional order under Section 263, remains valid and operative when the underlying revisional order itself has been quashed by the Tribunal.
Sections Cited
250, 143(3), 263
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Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Date of concluding the hearing : 08.01.2025 Date of pronouncing the order : 31.01.2025 O R D E R
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals) [hereinafter referred to as “the Ld. CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) dated, 29.04.2024.
The assessee in this appeal is aggrieved by the action of the Ld. CIT(A) in confirming the addition made by the Assessing Officer (in short “the AO”) of Rs. 2,32,50,000/- by considering the share capital and share premium received by the assessee income of the assessee from as unexplained M/s Swasti Realinfra Pvt. Ltd. sources. At the outset, the Ld. Counsel for the assessee has invited our attention to the impugned assessment order to submit that the impugned assessment order dated 21.11.2019 has been passed u/s 143(3)/263 of the Act in compliance of the order of Ld. Principal Commissioner of Income Tax, Kolkata (in short ‘the Ld. PCIT) dated 08.03.2019 passed u/s 263 of the Act, whereby the Ld. PCIT set aside the earlier order dated 09.08.2016, passed u/s 143(3)/263 of the Act and directed the AO to pass afresh assessment order after duly examining the issue relating to share capital and share premium received by the assessee. As per the directions given by him in the said order dated 08.03.2019. The Ld. Counsel for the assessee has further invited our attention to the order of the Co-ordinate Bench of the Tribunal in case of the assessee passed in vide order dated 11.01.2023, whereby, the Coordinate Bench of the Tribunal has quashed the order dated 08.03.2019 passed by the Ld. PCIT u/s 263 of the Act. Since the said order dated 08.03.2019 stood quashed by the coordinate Bench of the Tribunal vide order dated 11.01.2023 of the Tribunal, therefore, the consequential assessment order has no legs to stand and the same being become non-est/in-operative. Since the present appeal pertains to the additions made, by while giving the fact to the order of the Ld. PCIT dated 08.03.2019 and the said order stand quashed by the Tribunal, therefore, the consequential additions also stood quashed/deleted and the present appeal of the assessee has become infructuous hence, and the same is accordingly dismissed.
In the result, appeal filed by the assessee is dismissed.
Order pronounced in the court on 31.01.2025