ACIT 13(3)(2), MUMBAI vs. M/S LHOTSE DEVELOPERS & TRADING PVT. LTD., MUMBAI

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ITA 842/MUM/2019Status: DisposedITAT Mumbai30 January 2020AY 2012-132 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 held that since the order passed by the CIT under Section 263 was quashed, the consequential order passed by the AO to give effect to it had no basis. Therefore, the CIT(A)'s decision that the AO's order did not survive was upheld.

What were the facts?

The Revenue appealed against the CIT(A)'s order concerning an assessment under Section 143(3) read with Section 263 of the Income Tax Act. The Tribunal had previously quashed the CIT's order passed under Section 263.

What were the issues?

Whether a consequential assessment order passed by the AO survives when the underlying order of the CIT under Section 263, which it was meant to give effect to, has been quashed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, A Bench, Mumbai

Before: Shri R.C. Sharma & Shri Pawan Singh

For Appellant: Shri Michael Jerald
For Respondent: Shri Mayank Thosar
Hearing: 28.01.2020Pronounced: 30.01.2020

This is an appeal filed by the Revenue against the order of the CIT(A)-20, Mumbai for A.Y. 2012-13, in the matter of order passed by the AO under Sections 143(3) r.w.s. 263 of Income Tax Act, 1961 (hereinafter "the Act").

2.

At the outset the learned A.R. placed on record the order of the Tribunal in dated 31st July, 2018 wherein the order passed by the CIT under Section 263 of the Act was quashed.

However, we find that the AO has passed order to give effect to the order passed the CIT under Section 263 of the Act. Since the order passed by the CIT under Section 263 of the Act did not survive, therefore the consequential order passed by the AO has no legs to stand. Accordingly we

M/s. Lhotse Developers & Trading Pvt. Ltd. do not find any infirmity in the order of the CIT(A) in holding that the order passed by the AO under Section 143 r.w.s. 263 of the Act do not survive.

3.

In the result, the appeal filed by the Revenue is dismissed.

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