DCIT, CIRCLE-2(2), KOLKATA, KOLKATA vs. M/S TCG URBAN INFRASTRUCTURE HOLDING PVT. LTD., KOLKATA

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ITA 609/KOL/2019Status: DisposedITAT Kolkata22 November 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 upheld the CIT(A)'s order, agreeing that a consequential assessment order cannot survive if the revisional order under Section 263 is quashed. Therefore, the Revenue's appeal was dismissed.

What were the facts?

The Revenue appealed against an order of the CIT(A) which dismissed the appeal as infructuous. The CIT(A) had held that the assessment order, passed under Section 143(3) pursuant to a Section 263 order, could not survive as the Section 263 order itself was quashed by the ITAT.

What were the issues?

Whether a consequential assessment order under Section 143(3) can survive if the revisional order under Section 263, which directed the assessment, 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, “B”, BENCH KOLKATA

Before: SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM

For Appellant: Shri A. K. Tibrewal, FCA
For Respondent: Smt. Ranu Biswas, Addl. CIT
Hearing: 31/10/2019Pronounced: 22/11/2019

आदेश / O R D E R Per Bench:

1.

The captioned appeal filed by the Revenue, pertaining to assessment year 2012-13, is directed against the order passed by the Commissioner of Income Tax (Appeal)-12, Kolkata in appeal no. 10169/CIT(A)-12/Kol/Circle-2(2)/18-19, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) / 263 / 143(3) of the Income Tax Act, 1961 (in short the “Act”) dated 22.08.2017.

M/s TCG Urban Infrastructure Holdings Pvt. Ltd. Assessment Year:2012-13 2. The grounds of appeal raised by the Revenue are as follows: i) On the facts, circumstances and points of law, the ld. CIT(A) was not justified in dismissing the case, ignoring the facts and question of law raised before the Hon’ble High Court in relation to the order u/s 263 of the I.T. Act, 1961. ii) The appellant craves the leave to make any addition, alteration, modification etc. of the grounds either before the appellate proceedings, or in the course of appellate proceedings.

3.

At the outset itself, the ld. Counsel for the assessee has brought to our notice that the order u/s 263 of the Act has been quashed by ITAT, Kolkata vide order dated 30.08.2017 therefore the consequential order u/s 143(3) read with Section 263 should not be survived, hence appeal filed by the Revenue does not have any leg to stand.

4.

We heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials available on record. We note that the ld. CIT(A) has passed the order observing the following:

“Order u/s 143(3) follows direction u/s 263 of Commissioner of Income Tax, which is claimed to have been quashed by Hon’ble ITAT, Kolkata Bench, vide its order dated 30.08.2017. Since the revision order u/s 263 does not survive, the consequential order u/s 143(3) r.w. section 263 also cannot survive. This appeal thus becomes infructuous. If later the order u/s 263 is revived due to Hon’ble High Court’s order, then the consequential order u/s 143(3) / Section 263 / 143(3) will automatically be revived. For now, the appeal is treated as dismissed for being infructuous.”

Since the order of ld. PCIT passed u/s 263 has been quashed by the Hon’ble ITAT, Kolkata Bench vide order dated 30.08.2017 therefore, consequential order made by the Assessing Officer u/s 143(3) / 263 cannot survive and hence we did not find any infirmity in the order passed by the ld. CIT(A). That being so, we decline to M/s TCG Urban Infrastructure Holdings Pvt. Ltd. Assessment Year:2012-13 interfere in the order passed by the ld. CIT(A), his order on this issue, is hereby upheld and the grounds of appeal raised by the revenue is dismissed.

8.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the Court on 22.11.2019

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