ADITYA MUNDRA,DEWAS vs. INCOME TAX OFFICER - 1, DEWAS, DEWAS
Facts
Three assessees challenged the orders of the CIT(A) which upheld fresh assessment orders passed by the AO under Section 263 read with Section 143(3) of the Income-tax Act, 1961. These fresh assessment orders were a consequence of revision orders passed by the PCIT under Section 263, which had set aside the initial assessment orders. The appeals to the ITAT were filed with delays, for which condonation was sought, on the grounds that the assessees believed their cases were closed after a previous ITAT order quashed the original revision orders.
Held
The ITAT condoned the delay in filing the appeals. It was held that since the original revision orders under Section 263, which formed the basis for the fresh assessment orders, had already been quashed by a consolidated ITAT order dated 13.01.2021, the consequential fresh assessment orders passed by the AO under Section 263 read with Section 143(3) became infructuous. Therefore, the ITAT allowed the present appeals and quashed the impugned fresh assessment orders.
Key Issues
1. Whether the delay in filing appeals to the ITAT should be condoned. 2. Whether fresh assessment orders passed consequent to revision orders under Section 263 become infructuous if the original revision orders themselves have been quashed by a superior tribunal.
Sections Cited
143(3), 263
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश/ O R D E R
Per Bench:
The captioned three appeals by three different assessees challenge three
separate orders of first appeal dated 29.01.2024, 21.08.2023 & 22.04.2024,
all passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi
[“CIT(A)”] which in turn arise out of respective assessment-orders dated
23.12.2019 passed by learned ITO, Ward-1, Dewas [“AO”] u/s 143(3) r.w.s.
263 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2014-15.
The background facts leading to filing of present three appeals are
identical. In all these cases, initially assessment-orders were passed by AO
u/s 143(3). Thereafter, the Principal Commissioner of Income-tax [“PCIT”]
passed revision-orders u/s 263 whereby the assessment-orders were set
aside and the AO was directed to pass fresh orders. Pursuant to revision-
orders, the AO passed fresh assessment-orders dated 23.12.2019 u/s 263
r.w.s. 143(3) after making certain additions. The assessees then filed first-
appeals to CIT(A) assailing the orders of fresh assessment but did not get
any success. Now, the assessees have come before us in next appeals.
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Manoj Mundra and Others ITA No. 534 to 536/Ind/2024 – AY 2014-15 3. The Registry has informed a delay of 103 days, 233 days and 20 days
respectively in filing these appeals and therefore time-barred. Ld. AR for
assessee firstly submitted that the assessees have filed condonation
applications supported by affidavits. Referring to para 5 & 6 of the affidavits,
Ld. AR submitted that the present matters emanate from revision-orders
passed by PCIT u/s 263; that the assessee filed appeals before ITAT, Indore
against concerned revision orders; that the appeals of assessee were decided
by ITAT, Indore through a consolidated order dated 13.01.2021 in favour of
assessee wherein the revision-orders were quashed. Therefore, the assessees
gained an understanding that their cases have been closed and do not
require any action in present matters. Subsequently, when the counsel
guided that filing of appeals is also required in present matters, the
assessees arranged to file these appeals. Hence, there occurred delays. On
merits of cases, Ld. AR submitted that since the revision-orders passed u/s
263 have already been quashed by ITAT’s aforesaid order dated 13.01.2021,
the consequential fresh assessment-orders passed by AO u/s 263 r.w.s.
143(3), which give rise to present appeals, have also become infructuous. Ld.
AR has filed copy of aforesaid order of ITAT, Indore dated 13.01.2021.
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Manoj Mundra and Others ITA No. 534 to 536/Ind/2024 – AY 2014-15 Therefore, the present appeals deserve to be allowed. Ld. AR accordingly
prayed that the delays in filing appeals ought to be condoned and also
present appeals be allowed. Ld. DR for revenue agrees to the submission
and prayer of Ld. AR. Faced with this situation, the delays in filing present
appeals are hereby condoned and also the present appeals are allowed with
the result that the impugned orders of fresh assessment dated 23.12.2019
passed by AO are quashed.
Resultantly, these appeals are allowed.
Order pronounced by putting on notice board as per Rule 34 of ITAT Rules, 1963 on 31/01/2025
Sd/- Sd/- (DINESH MOHAN SINHA) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore िदनांक/Dated : 31/01/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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