ITO - 16(2)(2), MUMBAI vs. SHRI ARUN SURENDRAPRASAD TRIPATHI, NAVI MUMBAI

PDF · subscribers
ITA 1588/MUM/2020Status: DisposedITAT Mumbai01 October 2021AY 2014-153 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 Tribunal held that since the revision order under Section 263 was set aside by the ITAT, the consequential assessment order passed under Section 143(3) r.w.s. 263 would not survive. Therefore, the Revenue's appeal became infructuous.

What were the facts?

The Revenue appealed against the CIT(A)'s order which held that an assessment order passed under Section 143(3) r.w.s. 263 would not survive if the Section 263 order was quashed. The assessee submitted that the ITAT had already set aside the Section 263 order.

What were the issues?

Whether a consequential assessment order survives if the revision order under Section 263 is quashed. Whether the appeal becomes infructuous if the basis for the assessment is nullified.

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, VIRTUAL COURT

Before: SHRI C.N. PRASAD, HONBLE & SHRI MANOJ KUMAR AGGARWAL, HONBLEShri Arun Surendraprasad Tripathi

For Appellant: Shri Subodh Ratnaparkhi
For Respondent: Shri Brajendra Kumar
Hearing: 21.09.2021Pronounced: 01.10.2021

O R D E R PER C.N. PRASAD (JM) This appeal is filed by the revenue against the order of the Learned 1. Commissioner of Income Tax (Appeals)-5, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 03.02.2020 for the A.Y.2014-15.

Revenue has raised following grounds in its appeal: - 2. “i) Whether on the facts, in the circumstances of the case and as per law, the Ld.CIT(A) was justified in holding that once the order u/s. 263 of the I.T.Act is quashed, the order u/s. 143(3) r.w.s. 263

(A.Y: 2014-15) Shri Arun Surendraprasad Tripathi passed in pursuance of the same would not survive and need to be treated as null and void without adjudicating the case of merits? ii) Whether on the facts and in the circumstances of the case and as per law, the Ld. CIT(A) was justified that once the order u/s. 263 of the Act is quashed, the order u/s. 143(3) r.w.s. 263 passed in pursuance of the same would not survive and need to be treated as null and void despite of the facts that the order passed by the Hon'ble ITAT quashing the order u/s. 263 of the I.T.Act, 1961 has been appealed against before the Hon'ble High Court? iii) The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored.

3.

At the outset, Learned Counsel for the assessee submitted that the appeal filed by the assessee against the order passed u/s. 263 by the Ld. Commissioner of Income Tax-5 has been allowed and the order of revision has been set aside by the Tribunal in ITA.No. 2560/Mum/2018 dated 28.11.2018. He further submitted that Ld.CIT(A) allowed the appeal of the assessee taking note of the order passed by the Tribunal. Therefore, Learned Counsel for the assessee submitted that in view of the order of the Tribunal quashing the order passed u/s. 263 of the Act the appeal filed by the Revenue arising out of the consequential order passed giving effect to the order of the Ld. Commissioner of Income Tax passed u/s. 263 of the Act, becomes infructuous.

4.

Ld.DR fairly submitted the that ITAT quashed the 263 order and therefore consequential proceedings will not stand.

(A.Y: 2014-15) Shri Arun Surendraprasad Tripathi 5. On hearing rival contentions and perusing the order of the Ld.CIT(A), we find that the Tribunal by order in ITA.No. 2560/Mum/2018 dated 28.11.2018 has set aside the revision order passed u/s. 263 by the Ld.CIT–5. Therefore, since the revision order itself was set-aside by the Tribunal, the consequential Assessment Order passed u/s. 143(3) r.w.s. 263 of the Act will not survive and consequently the present appeal of the Revenue becomes infructuous.

6.

In the result, appeal of the Revenue is dismissed as infructuous.

Order pronounced on 01.10.2021 as per Rule 34(4) of ITAT Rules by placing the pronouncement list in the notice board.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →