SHISHUKUNJ EDUCATIONAL SOCIETY ,INDORE vs. PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) BHOPAL, BHOPAL
Facts
The assessee filed an appeal against a rectification order passed by the PCIT. The rectification order was based on an original order which had already been quashed by the ITAT. The assessee argued that the rectification order, being based on a void original order, was also unsustainable.
Held
The Tribunal held that since the original order was quashed by the ITAT, it became non-est, and a rectification order based on it could not be sustained. Consequently, the rectification order was also quashed.
Key Issues
Whether a rectification order premised on an original order that has been subsequently quashed by a higher authority is legally sustainable.
Sections Cited
154, 10(23C)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by rectification-order bearing DIN: ITBA/COM/F/17/2024-25/1070697227(1) and dated 27.11.2024 passed by learned PCIT (Central), Bhopal [“PCIT(Central)”] u/s 154 of Income-tax Act, 1961 [“the Act”], the assessee has filed this appeal.
Originally, the assessee filed as many as 6 grounds (with several sub- grounds) in Form No. 36 but subsequently the assessee filed only 3 concise/revised grounds vide application dated 25.08.2025. Ld. AR for
Page 1 of 4
M/s Shishukunj Educational Society ITA No. 905/Ind/2024 assessee submitted that the present appeal was filed by assessee on
20.12.2024 assailing the rectification-order dated 27.11.2024 passed by Ld.
PCIT(Central) wherein the Ld. PCIT(Central) has rectified his original order
bearing DIN: ITBA/COM/F/17/2024-25/1069282841(1) dated 30.09.2024.
However, the said original order passed by Ld. PCIT(Central) has already
been quashed by ITAT, Indore in ITA No. 806/Ind/2026 order dated
28.04.2025 (Para no. 21 of order). Therefore, due to such development,
there is a necessity to revise grounds and the grounds so revised, as
mentioned below, would be sufficient to resolve assessee’s grievance. Ld. DR
for revenue does not have any objection. Hence, the revised grounds as
under, are taken on record and being adjudicated:
“a. That the Ld. Authority has erred in law and on facts in passing the impugned rectification order, which was premised entirely on the original order dated 30/09/2024 cancelling the Appellant's registration under Section 10(23C)(vi) of the Income Tax Act. b. That the Ld. Authority has erred in law in passing the impugned rectification order, as subsequent to its issuance, the Hon'ble Tribunal, vide order dated 28/04/2025 in ITA No. 806/IND/2024, has quashed the original order dated 30/09/2024, thereby nullifying the very foundation on which the rectification was based. Consequently, the impugned rectification order is rendered infructuous, void ab initio, and legally unsustainable, as it cannot independently survive in the absence of the original order. c. That the continuation or enforcement of the rectification order in the absence of the original order amounts to a manifest error, and is in direct contravention of settled principles of law, including the doctrine of consequential invalidity.” 3. Ld. AR for assessee referred above grounds and made a
straightforward submission that since the original order dated 30.09.2024
passed by Ld. PCIT stands quashed by ITAT, the rectification-order dated
Page 2 of 4
M/s Shishukunj Educational Society ITA No. 905/Ind/2024 27.11.2024 passed by Ld. PCIT has no legs to stand and cannot survive. Ld.
AR submitted that in this situation, the impugned rectification-order passed
by Ld. PCIT(Central) is rendered infructuous and prays to quash the
impugned rectification-order passed by Ld. PCIT(Central).
Ld. DR for revenue could not rebut the submission of Ld. AR but,
however, made a limited request that the present appeal may be kept in
abeyance since the authorities are examining the aforesaid order dated
28.04.2025 passed by ITAT quashing the original order. According to Ld. DR,
the authorities are exploring the course of action to be taken.
We have considered submissions of both sides. After a careful
consideration, we find merit in the submission of Ld. AR. We find that the
present appeal is against rectification-order dated 27.11.2024 by which the
Ld. PCIT(Central) has rectified original order dated 30.09.2024 but the said
original order has already been quashed by ITAT, Indore Bench. Therefore,
when the original order has been quashed, the same becomes non-est and
the rectification-order being contested in present appeal cannot rectify a
non-est order. Hence at present, we have no hesitation in quashing the
rectification-order also; the same is hereby quashed by this order.
So far as the Ld. DR’s concern is concerned, the authorities shall have
all rights to take appropriate course of action this order as well.
Page 3 of 4
M/s Shishukunj Educational Society ITA No. 905/Ind/2024 7. Resultantly, this appeal is allowed.
Order pronounced in open court on 30/06/2025
Sd/- Sd/-
(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक/Dated : 30/06/2025
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
Page 4 of 4
