DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1, NASHIK vs. VENUGOPAL BHARKARAN, NASHIK

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ITA 527/PUN/2019Status: DisposedITAT Pune23 May 2022AY 2011-123 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 noted that the ITAT had already quashed the order passed under Section 263. Therefore, the consequential order of the AO was rendered non-existent, making the Revenue's appeal infructuous.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting additions made by the AO. The Pr. CIT had invoked Section 263, deeming the AO's order erroneous. Subsequently, the ITAT quashed the Pr. CIT's order under Section 263.

What were the issues?

Whether an appeal by the Revenue is maintainable when the order forming the basis of the appeal (under Section 263) has been quashed by a higher tribunal.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri Pramod Shingte
For Respondent: Shri Rajesh Gawli

आदेश / ORDER

PER S.S. VISWANETHRA RAVI, JM :

1.

This appeal by the Revenue against the order dated 10-01-2019 passed by the Commissioner of Income Tax (Appeals)-1, Nashik [‘CIT(A)’] for assessment year 2011-12.

2.

At the outset we note that this is an appeal by the Revenue against the order of CIT(A) in deleting the additions made by the AO in consequent to the directions u/s. 263 of the Act.

3.

Originally, the AO determined the income of the assessee at Rs.5,12,32,057/- inter alia making two additions to an extent of Rs.23,238/- and Rs.1,39,562/- as against the returned income of Rs.5,10,69,257/-. The Pr. CIT exercising his jurisdiction u/s. 263 of the Act held the order of AO passed u/s. 143(3) of the Act is erroneous and prejudicial to the interest of revenue by its order dated 29-03-2016. In pursuance of the same, the AO made addition to an extent of Rs.38,59,825/- and determined the total income of the assessee at Rs.5,50,71,882/-. As matter stood thus, the ITAT quashed the order of CIT passed u/s. 263 of the Act. The ld. DR, Shri Rajesh Gawli submits that the appellant-revenue filed an appeal before the Hon’ble High Court of Bombay against the order of ITAT and prayed to keep this appeal in abeyance till date the disposal of the same by the Hon’be High Court. The ld. AR, Shri Pramod Shingte submits that when the ITAT quashed the order passed u/s. 263 of the Act and the consequential order therein should be treated as non-existent and this appeal should be dismissed as infructuous. The ld. DR prayed that atleast liberty may be given to the Revenue to restore this appeal in case Revenue’s succeeds before the Hon’ble High Court of Bombay. Therefore, considering the facts and circumstances of the case and in the interest of justice, we treat this appeal as infructuous but, however, liberty granted to the appellant- revenue to make an application in case of favourable orders from the Hon’ble Jurisdictional High Court. Thus, the ground raised by the Revenue becomes infructuous.

4.

In the result, the appeal of Revenue is dismissed.

Order pronounced in the open court on 23rd May, 2022.

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