THE DCIT, CENTRAL CIRCLE-3, VADODARA vs. SHRI KALPESHKUMAR B. VERMA, ANAND

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ITA 1488/AHD/2019Status: DisposedITAT Ahmedabad25 March 2022AY 2009-104 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 under Section 263, which necessitated the assessment order, was quashed, the assessment order itself became infructuous. Therefore, the CIT(A)'s decision was upheld.

What were the facts?

The Revenue appealed against the CIT(A)'s order which held the assessment orders as infructuous. This was because the PCIT's order under Section 263, which led to the assessment, was set aside by the ITAT and upheld by the High Court.

What were the issues?

Whether an assessment order passed consequent to a Section 263 order that is subsequently quashed is rendered infructuous.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: Ms. Annapurna Gupta & Shri Mahavir Prasad

For Appellant: Shri V.K. Singh, Sr. D.R
For Respondent: Shri Hemant Suthar, A.R

Appellant by : Shri V.K. Singh, Sr. D.R. Respondent by : Shri Hemant Suthar, A.R. Date of hearing : 21-03-2022 Date of pronouncement : 25 -03-2022 आदेश/ORDER PER : ANNAPURNA GUPTA, ACCOUNTANT MEMBER:-

The present appeals have been filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad, (in short referred to as CIT(A)), dated 07-06-2019, u/s. 250(6) of the Income Tax Act, 1961(hereinafter referred to as the “Act”) pertaining to Assessment Year (A.Y) 2009-10 & 2010-11.

2.

At the outset itself, ld. Counsel for the assesse submitted in writing before us that the department’s appeal before us is against the order of the Ld. CIT(A) passed in appeal against orders passed u/s. 143(3) r.w.s. 263 of the Act. That the Ld.CIT(A) had allowed the assessee’s appeal noting that since the order passed u/s. 263 of the & 1489/Ahd/2019 A.Y. 2009-10 & 10-11 Page No 2 DCIT vs. Shri Kalpeshkumar B Verma Act had been setting aside by the ITAT, the assessment orders passed as a consequence had been rendered infructuous. It was further pointed out that the order of the ITAT setting aside the order of the Ld. PCIT passed u/s. 263 of the Act had been upheld by the Hon’ble High Court vide its order dated 10th Feb., 2020. Copies of the order of the High Court were enclosed. The contents of the submissions so filed before us dated 22.03.2022 are as under The appeals filed by the Revenue Department against the order of the Ld. CIT(A)-12 Ahmedabad dated 15.07.2019 in appeal against the orders passed u/s. 143(3) r.w.s. 263 of the I.T. Act.

The Ld. CIT(A) had allowed the appeals holding the assessment orders as infructuous on account of setting aside of the orders of the Ld. Pr. CIT passed u/s. 263 by the Hon’ble ITAT in & 1245/Ahd/2018 dated 18.02.2019. The copy of the order of the Hon’ble Tribunal is enclosed.

It is further submitted that the appeals of the Revenue Department filed before the Hon’ble High court against the order of the Hon’ble ITAT is also dismissed in Tax Appeal Nos. 761 & 762 of 2019 dated 10.02.2020. The copy of the orders of the Hon’ble High Court is enclosed.

Considering the above, the present appeals filed by the Revenue Department may please be dismissed as infructuous.

3.

Ld. D.R. was unable to controvert the above.

4.

We have heard both the parties and have also gone through the orders of the authorities below. & 1489/Ahd/2019 A.Y. 2009-10 & 10-11 Page No 3 DCIT vs. Shri Kalpeshkumar B Verma 5. The brief facts of the case are that the assessee is an individual deriving income from salary, house property, business and profession, capital gain and other sources. A search action u/s 132 was carried out at the residential premises of the assessee on 26/04/2013, consequent to which notice u/s 153A was issued to the assessee. In response, the appellant filed his return of income u/s 153A declaring total income at Rs.8,27,030/- on 30/01/2015. The AO passed the assessment order in the case of the assessee making an addition of Rs.3000/-, thereby assessing the total income at Rs.8,30,030/-. Subsequently, the PCIT(Central), Surat passed an order dated 16/03/2016 u/s 263 of the IT Act, setting aside the said assessment, and directed the AO to make fresh assessment in light of the issues highlighted in his order pertaining to allowance of interest expense of Rs.57,37,042/-. Consequent to the order of the PCIT (Central), Surat, the AO passed an order dated 30/10/2018 u/s 143(3) r.w.s. 263, disallowing an amount of Rs.57,47,042/- being the claim of the appellant.

6.

The assesse carried the matter in appeal before the Ld. CIT(A) and as pointed out by the ld. Counsel for the assesse before us as above, The Ld. CIT(A) held the said assessment order to be infructuous, Noting that the order passed u/s. 263 ld. PCIT stood quashed by the ITAT vide its order in & 1245/Ahd/2018 dated 18th Feb., 2019.

7.

Ld. Counsel for the assesse has also placed before us copies of the orders of the Hon’ble High Court upholding the order of the ITAT quashing the order passed by the Ld. PCIT u/s. 263 of the Act, in Tax Appeals No. 761 & 762 of 2019 dated 10th Feb., 2020.

8.

In view of the above, since the order u/s. 263 of the Ld. PCIT, as a consequence of which assessment order was passed u/s. 143(3) which came in appeal before the ld. CIT(A), does not survive, We see no reason to interfere in the order of the Ld. CIT(A) holding the assessment order to be infructuous. & 1489/Ahd/2019 A.Y. 2009-10 & 10-11 Page No 4 DCIT vs. Shri Kalpeshkumar B Verma

9.

In effect, both the appeals of the Revenue are accordingly dismissed.

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