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Facts
The Revenue preferred an appeal against the CIT(A)'s order which arose from an assessment framed under section 143(3) read with section 263 of the Income-tax Act, 1961. The foundation of this assessment was an order passed by the Pr. CIT under section 263.
Held
The Tribunal noted that the Pr. CIT's order under section 263 had already been quashed by a previous order of the Tribunal. Therefore, the assessment order and consequently the Revenue's appeal became infructuous.
Key Issues
Whether the Revenue's appeal can be sustained when the section 263 order, which formed the basis of the assessment, has been quashed by the Tribunal.
Sections Cited
143(3), 263, 1961
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आयकर अपीलीय अिधकरण,च�ीगढ़ �ायपीठ “बी” , च�ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: VIRTUAL MODE �ी लिलत कुमार, �ाियक सद� एवं �ी मनोज कुमार अ�वाल, लेखा सद� BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ िनधा�रण वष� / Assessment Year : 2014-15 The ITO बनाम Span Motels Private Limited Kullu Vill. Pirdi, PO: Mohali, Tehsil & Dist: Kullu(H.P) �ायी लेखा सं./PAN NO: AAHCS5745C अपीलाथ�/Appellant ��थ�/Respondent िनधा�रती की ओर से/Assessee by : Shri M.R. Sahu, C.A. (Virtual Mode) राज� की ओर से/ Revenue by : Smt. Tarundeep Kaur, CIT, DR (Virtual Mode) सुनवाई की तारीख/Date of Hearing : 02/09/2025 उदघोषणा की तारीख/Date of Pronouncement : 03/09/2025 आदेश/Order PER LALIET KUMAR, J.M:
This appeal has been preferred by the Revenue against the order of the Ld. CIT(A)/NFAC, Delhi dated 15.01.2025, arising out of assessment framed under section 143(3) read with section 263 of the Income-tax Act, 1961 for assessment year 2014-15.
At the time of hearing, the Ld. Departmental Representative fairly submitted that the foundation of the present assessment rests upon the order passed under section 263 of the Act by the Pr. CIT, Shimla, dated 13.03.2019. It was, however, brought to our notice that the Chandigarh Bench of the Tribunal vide order dated 08.01.2025 in has already quashed the very order passed under section 263. Consequently, the Ld. DR admitted that in view of the annulment of the section 263 order, the present appeal becomes infructuous. At the same time, the Ld. DR pleaded that the Revenue is exploring the possibility of filing an appeal before the Hon’ble High Court and, therefore, the matter may be adjourned.
On the other hand, AR appeared on behalf of the assessee, submitted that once the revisional order passed under section 263 stands quashed by