M/S. RUPAYAN UDYOG (SINCE DISSOLVED),KOLKATA vs. ITO, WARD - 49(4) , KOLKATA

The assessee in the present case is a partnership firm, which is engaged in the business of building construction and developer. The return of income for the year under consideration was filed by it on 27.10.2005 declaring total income of Rs.51,060/-. In the assessment originally completed under section 143(3) vide an order dated 31.12.2007, the total income of the assessee was determined by the Assessing Officer at Rs.2,82,762/- after making the addition of M/s. Rupayan Udyog (since dissolved)

Rs.2,31,702/- under section 40A(3) of the Income Tax Act, 1961. The said order was subsequently set aside by the concerned ld. CIT vide an order dated 05.06.2009 passed under section 263 with a direction to the Assessing Officer to make the assessment afresh. As per the direction of the ld. CIT, a fresh assessment was completed by the Assessing Officer under section 143(3) read with section 263 of the Act vide an order dated 28.12.2010 determining the total income of the assessee at Rs.18,08,965/- after making a further disallowance under section 40A(3) to the extent of Rs.94,327/- and a disallowance under section 40(a)(ia) amounting to Rs.13,80,818/-.

Against the order passed by the Assessing Officer under section 143(3)/263, an appeal was preferred by the assessee before the ld. CIT(Appeals) and since the submissions made by the assessee in support of its case were not found acceptable by the ld. CIT(Appeals), he proceeded to dismiss the appeal of the assessee. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the ld. Counsel for the assessee, the order passed by the concerned ld. CIT dated 05.06.2009 under section 263 was also challenged by the assessee in the appeal filed before the Tribunal and vide its order dated 28.11.2018 passed in the Tribunal quashed the order passed by the ld. CIT under section 263. As rightly contended by the ld. Counsel for the assessee, as a result of the order of the Tribunal quashing the order passed by the ld. CIT under section 263, the order passed by the Assessing Officer under section 143(3) read with section 263 dated 28.12.2010 has become nullity and the order passed by the Assessing Officer originally under section 143(3) vide an order dated 31.12.2007 stands restored. We accordingly cancel the assessment order dated M/s. Rupayan Udyog (since dissolved)

In the result, the appeal of the assessee is treated as allowed. Order pronounced in the open Court on January 25, 2019.