ACIT CIRCLE-28(3), MUMBAI vs. SHREE BHAGWATI ENTERPRISES, MUMBAI

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ITA 2769/MUM/2018Status: DisposedITAT Mumbai16 May 2019AY 2012-133 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 noted that a co-ordinate bench had previously quashed the revisionary order passed under Section 263. Consequently, the assessment order derived from it was rendered infructuous.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of an addition for unproved purchases. The original assessment order was framed under Section 143(3) read with Section 263 of the Act.

What were the issues?

Whether the assessment order survives when the revisionary order under Section 263, which led to it, 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, MUMBAI BENCH “G”, MUMBAI

Before: SHRI RAJESH KUMAR & SHRI RAM LAL NEGI

For Appellant: Shri Subodh Ratnaparkhi, A.R
For Respondent: Shri Rahul Raman, D.R
Hearing: 01.05.2019Pronounced: 16.05.2019

Per Rajesh Kumar, Accountant Member:

1.

The present appeal has been preferred by the Revenue against the order dated 15.12.2015 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2012-13 which in turn is arising out of assessment order framed u/s 143(3) r.w.s. 263 of the Act.

2.

The only issue raised by the Revenue is against the deletion of addition of Rs.10,04,14,525/- by Ld. CIT(A) as made by the AO towards the unproved purchase of materials. It is pertinent to mention that the present proceedings before us are 3 At the outset, the Ld. A.R. of the assessee submitted before the Bench that the revisionary order of the Pr. Commissioner passed under section 263 of the Act dated 15.12.2015 has been quashed by the co-ordinate bench of the Tribunal in the case titled as Shree Bhagwati Enterprises vs. Pr. CIT in A.Y. 2012-13 vide order dated 07.07.2017 and consequently all the proceedings emanating therefrom are also rendered infructuous. Therefore, all the consequent proceedings arising out of the said order are liable to be quashed. Accordingly, the Ld. A.R. prayed that the appeal of the Department may kindly be dismissed as the source order passed under section 263 of the Act stands quashed by the co-ordinate bench of the Tribunal.

4.

The Ld. D.R. fairly agreed to the contentions that the order under section 263 of the Act has been quashed by the Tribunal however he relied on the grounds of appeal.

5.

After hearing both the parties and perusing the material on record, we observe that in this case the revisionary order passed under section 263 of the Act dated 15.12.2015 has been quashed by the co-ordinate bench of the Tribunal in (supra) and therefore the assessment order passed by the AO under section 143(3) read with section 263 dated 30.12.2016 does not survive. Accordingly, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 16.05.2019.

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