DCIT CENTRAL CIRCLE 2(2), CHENNAI vs. N.SASIKALA, CHENNAI

This appeal filed by the Revenue is directed against the order of the ld. Commissioner of Income Tax (Appeals)-18, Chennai dated 29.06.2018 relevant to the assessment year 1994-95. The only effective ground in this appeal raised by the Revenue is that the ld. CIT(A) has erred in deleting all the additions made in the assessment order passed under section 143(3) r.w.s. 263 of the Income Tax Act, 1961 [“Act” in short].

The ld. Counsel for the assessee has submitted that the assessee has filed her return of income for the assessment year 1994-95 admitting an income of ₹.24,06,902/- after issuance of a notice under section 142(1) of the Act by the Assessing Officer. The assessment was completed under section 144 of the Act on 27.03.1997, which was set aside by the ld. CIT(A) vide his order dated 26.03.1998. Accordingly, the reassessment was completed under section 144 of the Act on 20.03.2000 determining the total income at ₹.28,86,030/-, which was challenged before the ld. CIT(A) by the assessee. It was further submission that by invoking the provisions of section 263 of the Act, vide order dated 14.03.2002, the ld. CIT set aside the reassessment order and directed the Assessing Officer to redo the assessment after making investigation/enquiries, etc. It was a submission that against the revision order under section 263 of the Act, the Assessing Officer completed the assessment under section 143(3) r.w.s. 263 of the Act by determining the total taxable income of the assessee at ₹.1,34,33,485/- vide order dated 20.03.2003. It was a submission that against the order under section 263 of the Act, the assessee preferred an appeal before the Tribunal and vide order dated 28.10.2007 in the Tribunal quashed the order passed under section 263 of the Act. It was further submission that against the order passed under section 143(3) r.w.s. 263 of the Act dated 20.03.2003, the assessee preferred an appeal before the ld. CIT(A) and vide order dated 29.06.2018, the ld. CIT(A) allowed the appeal of the assessee on the ground that since the Tribunal has quashed the revision order passed under section 263 of the Act, the impugned assessment order under section 143(3) r.w.s. 263 of the Act is consequential to the revision order and thus, no legs to stand and becomes infructuous.

Aggrieved, the Revenue is in appeal before the Tribunal. By referring to the grounds of appeal, the ld. DR has submitted that the decision of the Tribunal against the revision order under section 263 of the Act has been challenged before the Hon’ble High Court and pleaded for reversing the order of the ld. CIT(A).

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including the order passed by the Tribunal against order under section 263 of the Act. In this case, against the assessment order under section 143(3) r.w.s. 263 of the Act, the assessee preferred an appeal before the ld. CIT(A). Since vide order dated 18.10.2007 in the Tribunal has quashed the revision order itself, the ld. CIT(A) was of the view that the impugned assessment which was consequential to the revision order, has no legs to stand and becomes infructuous, thereby allowed the appeal of the assessee.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced on the 06th May, 2020 at Chennai.