ACIT, NEW DELHI vs. M/S. BHARTI AIRTEL LTD., NEW DELHI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that since the order passed under section 263 was set aside by the ITAT, the subsequent assessment order, which was based on the CIT's direction, must also fall. Therefore, there was no reason to interfere with the CIT(A)'s finding.
What were the facts?
The CIT(A) set aside an assessment order passed under section 143(3) r.w.s. 144C(13) by invoking powers under section 263. The ITAT had previously set aside the CIT's order passed under section 263.
What were the issues?
Whether the assessment order can be sustained when the order passed under section 263, which directed the assessment, has been set aside by the Tribunal.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘A’ BENCH,
Before: SHRI N.K. BILLAIYA, & SHRI SUCHITRA KAMBLE
PER N.K. BILLAIYA, ACCOUNTANT MEMBER,
With this appeal, the Revenue has challenged the correctness of the order of the ld.
CIT(A)-2, New Delhi, dated 16/09/2016 pertaining to Assessment Year 2008-09.
2. The substantive grievance of the Revenue read as under:-
“1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A), has erred by holding that order u/s 263/143(3)/144C(13) dated 31.03.2015 cannot be sustained.
2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A), has ignored the fact that Revenue has filed further appeal before the Hon’ble Delhi High Court against the ITAT order dated 06/05/2015 in ITA No.3120/Del/2014.”
Briefly stated the facts of the case are that the assessment order dated 30/10/2012 framed u/s 143(3) r.w.s. 144C(13) of the Act was set-aside by the Ld. CIT(A) u/s 263 of the Act. The assessee challenged the validity of order framed u/s 263 of the Act before the Tribunal and the Tribunal in order dated 06/05/2015 set-aside the order passed by the ld. CIT u/s 263 of the Act.
The relevant findings of the Tribunal read as under:- “73. In view of the aforesaid discussions and by keeping in view the ratio laid down in the various judicial pronouncement we set aside the impugned order dated 31/03/2014 passed by the Ld. CIT(A) u/s 263 of the Act and the assessment order dated 30/10/2012 is restored.”
The present assessment order is framed pursuant to the direction of the ld. CIT vide order dated 30/03/2014. As mentioned elsewhere, this order of the Ld. CIT has been set-aside by the Tribunal (supra).
When the foundation has been removed, the super structure must fall i.e. when the order framed u/s 263 of the Act has been set-aside by the Tribunal, the subsequent assessment order must fall.
Considering the facts as mentioned above, we do not find any reason to interfere with the finding of the Ld. CIT(A).
In the result, appeal filed by the Revenue is dismissed. The order is pronounced in the open court on 30/07/2019
More judgments on Section 263
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- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Vimal Harilal Baldania, Gandhidham vs The ITO Ward 2, GandhidhamITA 770/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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