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Facts
The Revenue appealed the deletion of a Section 10A disallowance by the CIT(A), while the assessee filed a cross-objection challenging the assessment order passed under Section 143(3) r.w.s. 263. The original revisionary order under Section 263 had been set aside by the ITAT in a prior proceeding for the same assessee and assessment year.
Held
The Tribunal held that since the assessment order was passed under Section 143(3) read with Section 263, and the Section 263 order was already quashed, the consequential assessment order was void ab initio. Therefore, the appellate proceedings arising from this assessment order, including the CIT(A)'s order, did not survive for adjudication on merits.
Key Issues
Validity of assessment proceedings initiated under Section 143(3) r.w.s. 263 when the Section 263 order was previously quashed by the ITAT.
Sections Cited
10A, 143(3), 263
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-MS. SUCHITRA R. KAMBLE
CO No. 94/Ahd/2025 (Assessment Year: 2011-12) Asstt. Commissioner of M/s. Linde Engineering Pvt. Ltd., Vs. Income-tax, Linde House, Near Nilambar Circle 1(1)(1), Circle, Vadodara-391410 Vadodara [PAN : AAACL 0084 E] (Appellant) .. (Respondent & Cross-objector) Appellant represented by : Shri R.P. Rastogi, CIT-DR Respondent represented by: Shri S.N. Soparkar, Sr. Advocate Date of Hearing 12.01.2026 Date of Pronouncement 13.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal by the Revenue and the Cross Objection by the assessee arise out of the order dated 20.08.2025 passed by the Ld. Commissioner of Income Tax (Appeals), Ahmedabad-13, [hereinafter referred to as “Ld. CIT(A)”] under section 250 of the Income- tax Act, 1961 [“the Act”] for the Assessment Year (AY) 2011-12.
The Revenue has raised following grounds of appeal :- “On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance u/s 10A amounting to Rs.31,74,80,850/- without appreciating the facts that as per the provisions of section 92C(4) of the Act, no deduction u/s 10A is allowable in respect of amount of income by which the total income of the assessee is enhanced as a result of computation of arm's length price.”
3. The assessee has raised following grounds in its Cross-Objection:-
“1. On the facts and circumstances of the case and in law, Ld. AO erred in making an assessment, under section 143(3) r.w.s. 263 of the Act, without appreciating that proceedings under section 263 of the Act were invalid and hence quashed by the Hon'ble Income Tax Appellate Tribunal ('ITAT) vide order dated 30 March 2022. Consequently, the Respondent prays that the entire assessment proceedings under section 143(3) r.ws. 263 of the Act were void-ab-initio, illegal, bad in law and therefore liable to be quashed.
CO No. 94/Ahd/2025 ACIT Vs. Linde Engineering Pvt Ltd Asst. Year : 2011-12 - 2– 2. Without prejudice to the above, on the facts and circumstances of the case and in law, the Ld. AO erred in disallowing the claim of deduction under section 10A of the Act amounting to INR 31,74,80,850. Accordingly, the Respondent prays that disallowance of the claim of deduction under section 10A of the Act be deleted.”
At the very outset, Ld. Senior Advocate appearing on behalf of the assessee, invited our attention to the order dated 30.03.2022 passed by this Tribunal in for AY 2011-12, in the case of the assessee itself, whereby the revisionary order passed by the Ld. Pr. CIT u/s 263 of the Act has been set aside. The Ld. Senior Advocate submitted that once the order u/s 263 of the Act has been set aside by the Tribunal, the consequential assessment order passed u/s 143(3) r.w.s. 263 of the Act does not survive in the eyes of law. Consequently, any appellate proceedings arising out of such assessment order, including the order passed by the Ld. CIT(A), are rendered void ab initio and non est.
We have heard the rival submissions and perused the material available record. It is an undisputed fact that the assessment order giving rise to the present appeal and Cross Objection was framed u/s 143(3) r.w.s. 263 of the Act. Since the very foundation of the assessment, namely the order passed u/s 263 of the Act, has already been quashed by the Tribunal, the consequential assessment order has no legs to stand on and is void ab initio. Consequently, the appellate order passed by the Ld. CIT(A) and the issues raised therein do not survive for adjudication on merits.
In the result, the appeal filed by the Revenue is dismissed, and the Cross Objection filed by the assessee is also dismissed as infructuous.
The order is pronounced in the open Court on 13.01.2026. (SUCHITRA R. KAMBLE) VICE-PRESIDENT Ahmedabad; Dated 13.01.2026 **btk