TCG URBAN INFRASTRUCTURE HOLDINGS PVT LTD.,KOLKATA vs. ACIT, CIRCLE - 2(2), KOLKATA

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ITA 549/KOL/2019Status: DisposedITAT Kolkata01 May 2019AY 2012-133 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the Section 263 order was quashed, the consequential assessment order passed by the AO became non-est. Therefore, the CIT(A) should have cancelled the assessment instead of dismissing the appeal.

What were the facts?

The assessee's original assessment was set aside by the CIT under Section 263. A fresh assessment was made, and the assessee appealed to the CIT(A). However, the Tribunal later quashed the CIT's Section 263 order.

What were the issues?

Whether a consequential assessment order remains valid after the order under Section 263, which directed the fresh assessment, is quashed.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH (A

Before: Shri P.M. Jagtap(KZ) & Shri S. S. Viswanethra Ravi, JM]

order : May 01, 2019 ORDER Per P.M. Jagtap, Vice President (KZ) This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 12, Kolkata dated 10.01.2019 whereby he dismissed the appeal of the assessee by treating the same as infructuous.

2.

The assessee in the present case is a company which is engaged in the business of real estate, hiring of equipment, financing & consultancy. In the assessment originally completed u/s 143(3) vide an order dated 21.03.2015, the total income of the assessee was determined by the AO at Rs. 9,32,25,610/-. The said assessment was set aside by the concerned Ld. CIT vide an order dated 15.02.2017 passed u/s 263 with the direction to the AO to make the assessment afresh as per the direction given in the order u/s 263. In pursuant to the directions given by the Ld. CIT u/s 263, a fresh assessment was 2 TCG Urban Infrastructure Holdings Pvt. Ltd. Assessment Year: 2012-13 made by the Assessing Officer u/s 143(3) read with section 263 vide an order dated 22.08.2017 determining the total income of the assessee at Rs. 13,60,66,841/-.

3.

Against the order passed by the AO u/s 143(3) read with section 263, an appeal was filed by the assessee before the Ld. CIT(A). Meanwhile the appeal filed by the assessee against the order of the Ld. CIT dated 15.02.2017 passed u/s 263 came to be disposed of by the Tribunal vide its order dated 30.08.2017 passed in whereby the order passed u/s 263 was quashed by the Tribunal. When this position was brought to the notice of the Ld. CIT(A) by the assessee, the Ld. CIT(A) treated the appeal filed by the assessee against the order passed by the AO u/s 143(3) read with section 263 as infructuous and dismissed the same. Aggrieved by the order of the Ld. CIT (A), the assessee has preferred this appeal before the Tribunal.

4.

We have heard the arguments of both the sides and also perused the relevant material available on record. As rightly contended by the learned counsel for the assessee, as a result of quashing of the order of the Ld. CIT passed u/s 263 by the Tribunal, the consequential order passed by the AO u/s 143(3) read with section 263 has become non-est in the eyes of law and the Ld. CIT(A) ought to have cancelled the said assessment allowing the appeal of the assessee instead of dismissing the same. We accordingly modify the impugned order of the Ld. CIT(A) to this effect and cancel the 3 TCG Urban Infrastructure Holdings Pvt. Ltd. Assessment Year: 2012-13 assessment made by the Assessing Officer u/s 143(3) read with section 263 of the Act vide an order dated 22.08.2017.

5.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 1st May, 2019.

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