VISION 2K+INC,HYDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-4(1), HYDERABAD

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ITA 2223/HYD/2017Status: DisposedITAT Hyderabad09 March 2022AY 2005-063 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT's revision order, which formed the basis for reopening the assessment, had already been reversed by a coordinate bench. Therefore, the consequential assessment and subsequent proceedings under Section 147/148 were invalid.

What were the facts?

The Assessing Officer reopened the assessment based on a revision order by the CIT under Section 263, which deemed the original assessment erroneous. The revision was related to the assessee's claim for Section 10B exemption.

What were the issues?

The primary issue was the validity of the reassessment proceedings initiated based on a Section 263 revision order that was subsequently overturned by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 263,Section 10B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD

Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU

BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessment Year: 2005-06 Vision 2K+INC, Asst.Commissioner HYDERABAD Vs of Income Tax, [PAN: AACFV4642H] Circle-4(1), HYDERABAD (Appellant) (Respondent) For Assessee : Ms. S.Sandhya, AR For Revenue : Shri Sunil Gowtham, Sr.DR Date of Hearing : 07-03-2022 Date of Pronouncement : 09-03-2022 O R D E R PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2005-06 arises from the CIT(A)-1, Hyderabad’s order dated 18-09-2017 passed in case No.0557 / CIT(A)-1, Hyd / 2014-15 / 2017-18, involving proceedings u/s.143(3) r.w.s.147 of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.

2.

It emerges at the outset that we hardly need to delve much deeper in the relevant factual matrix so far as the assessee’s instant lis is concerned. A perusal of the case file suggests that the Assessing Officer had re-opened the assessment herein dt.20-12-2010 framed u/s.143(3) r.w.s.263 of the Act. And that the CIT-IV, Hyderabad had passed the said Section 263 revision order u/s.263 on 26-03-2010 terming the earlier regular assessment dt.31-12-2007 to have been erroneously framed causing prejudice to interest of the Revenue.

3.

Both the parties are ad idem during the course of hearing that the CIT had sought to exercise his Section 263 revision jurisdiction on the issue of Section 10B exemption. We note in this factual backdrop that the tribunal’s co-ordinate bench’s order in dt.21-01-2011 has already reversed the CIT’s revision directions herein above which renders the corresponding consequential assessments dt.20- 12-2010 framed u/s.143(3) r.w.s.263 as well as the instant Section 147/148 proceedings therein finalised on 13-12-2012 as having no legs to stand. We conclude in this backdrop of facts that the assessee’s instant appeal deserves to succeed for the foregoing precise reason alone. We order accordingly. All other pleadings on merits stand rendered infructuous.

4.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open court on 9th March, 2022

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