DCIT-1(1), MUMBAI vs. M/S AMAZIA DEVELOPERS PVT. LTD., MUMBAI

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ITA 5225/MUM/2019Status: DisposedITAT Mumbai10 February 2021AY 2012-133 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 affirmed the CIT(A)'s order, stating that the consequential order passed by the AO pursuant to a quashed Section 263 order cannot survive. The Revenue's appeal was found to have no substance.

What were the facts?

The Revenue appealed against the CIT(A)'s order which quashed the AO's order. The AO's order was passed to give effect to a previous order under Section 263. However, the ITAT had already quashed the Section 263 order.

What were the issues?

Whether an order passed by the AO giving effect to a Section 263 order is valid when the Section 263 order itself has been quashed by the ITAT.

Which sections of the Income-tax Act were involved?

Section 263,Section 143

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” Bench, Mumbai

For Appellant: Shri Anuj Kishnadwala
For Respondent: Shri Brajendra Kumar
Hearing: 09.02.2021Pronounced: 10.02.2021

O R D E R Per Shamim Yahya (AM) :-

This appeal by the Revenue is directed against the order of learned CIT(A) dated 30.5.2019 and pertains to assessment year 2012-13.

2.

Grounds of appeal read as under :- 1. "On the facts and in the circumstances of the case and in law, the Id. CIT(A) should have kept the matter in abeyance as the department has not accepted the order of Hon'ble ITAT quashing the order under sec. 263". 2. "On the facts and in the circumstances of the case and in law, the Id. CIT(A) may be directed to adjudicate on merits if the Hon'ble High Courts upholds the order under sec. 263 and hence the appeal be restored".

3. Learned CIT(A) in this case has passed following order :- “I find that the order under appeal is the order dated 31.8.2017 passed by the AO to give effect to the directions contained in the order u/s.263 dated 27.3.2017 passed by the C.I.T.-1, Mumbai. Since the order u/s.263 has been held to be invalid by the ITAT order in dated

2 M/s. Amazia developers Pvt. Ltd.

8/5/2019, the order dated 31.08.2017 passed by the Assessing Officer u/s. 143 r.w.s. 263 cannot survive. Accordingly, the said order u/s. 143(3) r.w.s. 263 dated 31.8.2017 is hereby quashed.”

4.

Against this order the Revenue is in appeal before us.

5.

We have heard both the counsel and perused the records. We find that learned CIT(A) has taken correct this view of the matter. There is no substance whatsoever in the Revenue’s appeal. Once the ITAT has quashed the learned CIT(A)’s order u/s. 263 of the Act. Consequent order pursuant to section 263 have no legs to stand before the ITAT. Hence, we affirm the order of learned CIT(A).

6.

Learned Departmental Representative has contended that it may be recorded that if Hon'ble High Court reversed the ITAT order, the Revenue right should be protected. We find that if Hon'ble High Court reverses the ITAT order, the Revenue is free to take the appropriate action. No specific order by us is required in this regard at this stage.

In the result, this appeal filed by the Revenue stands dismissed. 7.

Order pronounced under Rule 34(4) of the ITAT Rules by placing the result on notice board on 10.2.2021.

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