M/S. CASTRON TECHNOLOGIES LTD.,KOLKATA vs. ACIT, HQRS.-1, KOLKATA, KOLKATA

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ITA 157/KOL/2019Status: DisposedITAT Kolkata15 February 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 found that the order passed by the CIT under section 263 was quashed in a prior appeal. Consequently, the fresh assessment order based on the quashed order became invalid and was cancelled.

What were the facts?

The assessee's income was originally assessed, then the assessment was set aside by the CIT under section 263. A fresh assessment was made, adding income on account of deemed dividend. The CIT(A) upheld this fresh assessment.

What were the issues?

The primary issue was the validity of the assessment order passed under section 143(3) read with section 263, given that the section 263 order itself was later quashed.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 2(22)(e)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH (A

Before: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi]

order

: February 15, 2019 ORDER

Per P.M. Jagtap, Vice President

1.

This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 12 Kolkata dated 20.12.2018.

2.

The assessee in the present case is a company which is engaged in the business of manufacturing of Ferro Alloys. In the assessment originally completed u/s 143(3) vide an order dated 31.03.2015 the total income of the assessee was determined by the AO at Rs. 1,51,47,818/- as against the returned income of Rs. 1,34,05,730/- . The said assessment was subsequently set aside by the concerned Ld. CIT vide his order dated 01.03.2017 passed u/s 263 and in the fresh assessment made by the AO u/s 143(3) read with section 263 vide an order dated 28.06.2017, the total income of the assessee was determined at Rs. 2,38,62,490/- after making addition of Rs. 87,14,672/- on account of deemed dividend u/s 2(22)(e) of the Act.

Assessment Year: 2012-13 M/s. Castron Technologies Ltd.

On appeal, the Ld. CIT(A) vide his appellate order dated 20.10.2018 upheld the order passed by the AO u/s 143(3) read with section 263 of the Act. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal.

3.

We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by learned counsel for the assessee, an appeal was preferred by the assessee before the Tribunal against the order dated 01.03.2017 passed by the Ld. CIT u/s 263 and while disposing of the same vide an order dated 04.04.2018 passed in the Tribunal quashed the order passed by the Ld. CIT u/s 263 of the Act holding the same to be bad in law. Consequently, the order passed by the AO u/s 143(3) read with section 263 has become non-est in the eyes of law and the same is liable to be cancelled. We accordingly cancell the order passed by the AO u/s 143(3) red with section 263 and allow this appeal of the assessee.

4.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 15th February, 2019.

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