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Facts
The Revenue preferred an appeal against the CIT(A)'s order, which had set aside the AO's order passed under Section 143(3) read with Section 263 of the Income Tax Act. The AO's order was passed after the CIT(A) invoked his revisionary powers and directed a fresh assessment.
Held
The Tribunal held that since the revision order under Section 263 was already quashed by the Tribunal, the consequential assessment order passed by the AO had no legal standing. Therefore, the CIT(A)'s order deleting the additions was upheld.
Key Issues
Whether the assessment order passed by the AO is valid when the preceding revisionary order under Section 263 was quashed by the Tribunal?
Sections Cited
143(3), 263
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Income Tax Appellate Tribunal, “C ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
"ी संजय गग", "ाियक सद" एवं "ी मकरंद वसंत महादेवकर, लेखा सद" के सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं / Year : 2017-18 The ACIT Baghban Packaging LLP बनाम/ Central Circle-1(3) Urmin House, Ground Floor v/s. Ahmedabad 380 014 Sindhu bhavan Road B/s. HOF Living Off. SG Highway, Bodakdev Ahmedabad – 380 059 "थायी लेखा सं./PAN: AAQFB 1688 P (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Aseem L. Thakkar, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 10/07/2025 घोषणा की तारीख /Date of Pronouncement: 29/07/2025 आदेश/O R D E R
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order of the Commissioner of Income Tax (Appeals)-11, Ahmedabad [hereinafter referred to as ‘the CIT(A)] dated 19/02/2025 setting aside the order passed by the Assessing Officer (AO) u/s.143(3) r.w.s.263 of the Income Tax Act, 1961 dated 27/03/2023, for the Assessment Year (AY) 2017-2018.
In this case, the earlier assessment order passed by the AO u/s.143(3) of the Act was set aside by the Pr.Commissioner of Income Tax invoking his ACIT vs. Baghban Packaging LLP Asst.Year : 2017-18 revision jurisdiction u/s.263 of the Act and directed the AO to pass a fresh assessment order as per the directions given by him. Consequent to the above directions, the Ld.AO passed a fresh assessment order u/s.143(3) r.w.s.263 of the Act dated 27/03/2023 making certain additions. In the meantime, the assessee preferred an appeal before this Tribunal against the revision order passed by the Ld.CIT/PCIT u/s.263 of the Act. The Tribunal vide order dated 26/07/2023 passed in quashed the order passed by the Commissioner u/s.263 of the Act.
The Ld.CIT(A) vide impugned order dated 19/02/2025, in the appeal of the assessee against the assessment order dated 27/03/2023 passed u/s.143(3) r.w.s.263 of the Act, held that since the order u/s.263 has already been quashed by the Tribunal, therefore the impugned assessment order u/s.143(3) r.w.s.263 of the Act did not have any legs to stand and, accordingly, held the same as inoperative and deleted the additions made by the AO vide said order dated 27/03/2023.
4. Being aggrieved by the said order of the Ld.CIT(A), the Revenue has come in appeal pleading that the Revenue has already preferred appeal before the Hon’ble Jurisdictional High Court of Gujarat against the order of the Tribunal dated 26/07/2023 and that in the facts and circumstances, the Ld.CIT(A) was not justified in invalidating the order passed by the AO dated 27/03/2023 u/s.143(3) r.w.s.263 of the Act.
We have heard the rival contentions and gone through the record. Admittedly, the revision order passed by the CIT/PCIT u/s.263 of the Act has been quashed by the Tribunal vide order dated 26/07/2023. Therefore, ACIT vs. Baghban Packaging LLP Asst.Year : 2017-18 the consequential order passed by the AO u/s.143(3) r.w.s.263 of the Act has no legs to stand and the same has become infructuous/inoperative. Therefore, there is no infirmity in the order of the CIT(A) and the same is upheld. However, it is directed that, in case, the appeal of the Revenue against the order of the Tribunal dated 26/07/203 is allowed and the order of the Tribunal is set aside by the Hon’ble High Court of Gujarat, then in that event, the Revenue will be at liberty to move an application before this Tribunal for revival of this appeal.
With the above observations, appeal of the Revenue is hereby dismissed.