OM FORGING & ENGINEERING PRIVATE LIMITED,KOLKATA vs. I.T.O.,WARD-3(3), KOLKATA

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ITA 401/KOL/2019Status: DisposedITAT Kolkata24 September 2020AY 2011-123 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the original Section 263 order was quashed, the subsequent assessment orders and the CIT(A)'s order upholding them were null and void. Therefore, the CIT(A)'s order was cancelled.

What were the facts?

The assessee's assessment orders for AYs 2010-11 and 2011-12 were passed consequent to an order under Section 263. The assessee had previously challenged the Section 263 order before the ITAT, which quashed it.

What were the issues?

Whether assessment orders passed consequent to a quashed Section 263 order are valid. The validity of the CIT(A)'s order which upheld such assessment orders.

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, “C” BENCH: KOLKATA

Pronounced: 24.09.2020

ORDER Per Shri A.T.Varkey, JM

Both these appeals are preferred by the assessee against the order of Ld. CIT(A)-12, Kolkata dated 10.01.2019 for A Ys. 2010-11 & 2011-12.

2.

The Grounds of Appeal

for both the assessment years are as under:

1. That on the facts of the case, the Ld. Commissioner of Income Tax (Appeals)-12, Kolkata erred in dismissing the appeal of the assessee although the impugned Assessment Order was passed in consequence to the order dated 13th February, 2017 passed u/s 263 of the Act which was quashed by Hon’ble Tribunal vide & 510/Kol/2017 dated 13th December, 2017.

2. That, on the facts stated in the aforesaid ground, the Ld. Commissioner of Income (Appeals)-12, Kolkata should have quashed the impugned assessment order dated 14th December,2017 passed u/s 143(3) / 147 r.w.s. 263 of the Income Tax Act, 1961.

3. At the outset, the ld. Counsel for the assessee, Shri A. K. Tibrewal, FCA, brought to our notice that the impugned order of Ld CIT(A) stems from the Assessing Officer’s re- assessment order dated 14.12.2017 for A.Y. 2010-11 and 2011-12 ; respectively, which was passed consequent to the order passed by the Ld. Principal CIT u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) dated 13.2.2017 for both the years. It was brought to our notice that the assessee had challenged the order of the PCIT passed u/s 263 of the Act dated 13.2.2017 before this Tribunal vide & 510/Kol/2017 for A.Ys. 2010-11 & 2011-12 respectively and the Tribunal “B” Bench vide order dated 13.12.2017 after hearing the ld. CIT D.R was pleased to quash the order of Principal CIT passed u/s 263 of the Act and drew our attention to the order of the Tribunal in the case of the assessee dated 13.12.2017. Therefore, according to the ld. A.R all the consequent actions taken by the Assessing Officer/ ld. CIT(A) is null in the eyes of law. The Ld. D.R could not controvert this factual assertion of the ld. A.R that since the Tribunal has quashed the ld. Principal CIT’s order u/s 263 dated 13.2.2017 and therefore, the consequent action of the Assessing Officer / ld. CIT(A) are null in the eyes of law.

4.

We have heard both the parties and perused the materials on record. We note that the aforesaid factual assertion made by the Ld. A.R could not be controverted by the Assessing Officer. Since the Assessing Officer’s re-assessment order dated 14.12.2017 was the fall out/giving effect to the order of PCIT’s revistional order dated 13.02.2017 passed u/s 263 of the Act, which has been quashed by the Tribunal vide order dated 13.12.2017, therefore, the Assessing Officer’s order passed u/s 143(3) read with Section 263 of the Act is non-est and null in the eyes of law. Therefore, we hold that the impugned order of the ld. CIT(A) is null in the eyes of law and so is cancelled.

5.

In the result, both the appeals of assessee are allowed.

Order is pronounced in the open court on 24th September, 2020.

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