CREW BOS PRODUCTS LTD.,GURGAON vs. DCIT, FARIDABAD

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ITA 2008/DEL/2017Status: DisposedITAT Delhi19 September 2019AY 2005-064 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 since the PCIT's order under Section 263 was previously quashed by a coordinate bench, the consequential assessment order made by the AO also has no legal standing and must be quashed.

What were the facts?

The Revenue's PCIT set aside the original assessment order, directing the AO to re-examine deductions under Section 10B and disallowance of interest. The AO then made additions, leading to the assessee's appeal.

What were the issues?

The primary issue was the validity of the assessment order passed pursuant to a PCIT order that was subsequently quashed.

Which sections of the Income-tax Act were involved?

Section 10B,Section 36(1)(iii),Section 153A,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI K. NARASIMHA CHARY & SHRI ANADEE NATH MISSHRA

For Appellant: Shri V. Raj Kumar, Advocate
For Respondent: Ms Rachna Singh, CIT-DR, Shri V. Raj Kumar, Advocate
Hearing: 3.9.2019

Crew Bos Products Ltd. Vs DCIT, Central Circle-1, 37 Sector-4, IMT Manesar Faridabad. Gurgaon PAN: AAACC322F Appellant Respondent Revenue by Ms Rachna Singh, CIT-DR Assessee by Shri V. Raj Kumar, Advocate Date of Hearing 3.9.2019 Date of Pronouncement 19 .9.2019 ORDER PER K. NARASIMHA CHARY, J.M. Challenging the order dated 31.1.2017 of the learned Commissioner of Income-tax (Appeals)-3, New Delhi {for short “Learned CIT(A)”} passed in Appeal No.172/15-16, assessee preferred this appeal.

2.

Brief facts of the case are that by order dated 28/02/2013 passed under section 153A(1)(b) read with section 143(3) of the Income Tax Act, 1961 (for short “the Act”), the income of the assessee was assessed at Rs.1,33,34,120/- as against the return income of Rs.76,12,257/-. Ld. PCIT (C), Gurgaon on examination of the said order along with assessment records, by order dated 12/3/2015 found that the assessment order was erroneous as well as prejudicial to the interest of Revenue and set aside the assessment order to the file of the Ld. AO to examine de novo after giving assessee an opportunity of being heard in respect of the deduction under section 10 B of the Act and disallowance of interest as per provisions contained in proviso to section 36(1)(iii) of the Act.

3.

Learned Assessing Officer, after hearing the assessee by order dated 12.01.2016 passed under section 263 read with section 143(3) of the Act made certain additions and determined the income of the assessee at Rs.10,79,63,640/-. Aggrieved by the said addition, assessee preferred this appeal. 4. At the outset, it is submitted that the order dated 12.03.2015 passed by the Ld. PCIT (Central), Gurugram was quashed by a coordinate Bench of this Tribunal by order dated 23.10.2018 in and, therefore, the consequential order has no legs to stand and has to be quashed. 5. We have gone through the order dated 23.10.2018 in ITA No. 3088/Del/2015 where under the order passed by the Ld. PCIT under section 263 of the Act was quashed. We, therefore, hold that any consequential order will have no existence and consequently, the assessment order dated 12.01.2016 passed under section 263 read with section 143(3) of the Act has to be quashed. According, we do so.

6.

In the result appeal of the assessee is allowed.

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