HALDIA PETROCHEMICALS LIMITED,KOLKATA vs. DCIT, CIRCLE - 7(1), KOLKATA, KOLKATA

The assessee in the present case is a company, which is engaged in the business of manufacturing generation of power and energy. In the assessment originally completed under section 143(3) vide an order Haldia Petrochemicals Limited dated 30.12.2010, the total income of the assessee was determined by the Assessing Officer at Rs.1,66,02,472/-. The said assessment was set aside by the concerned ld. CIT vide an order passed under section 263 dated 28.03.2013 with a direction to the Assessing Officer to make the assessment afresh as per the directions given in the order under section 263. In pursuance to the direction given by the ld. CIT under section 263, a fresh assessment was made by the Assessing Officer under section 143(3) read with section 263 vide an order dated 03.03.2014 determining the total income of the assessee at Rs.7,29,85,626/-.

Against the order passed by the Assessing Officer under section 143(3) read with section 263, an appeal was filed by the assessee before the ld. CIT(Appeals). Meanwhile the appeal filed by the assessee against the order of the ld. CIT dated 28.03.2013 passed under section 263 came to be decided by the Tribunal vide its order dated 10.06.2016 passed in whereby the order passed under section 263 was quashed by the Tribunal. When this position was brought to the notice of the ld. CIT(Appeals) by the assessee, the ld. CIT(Appeals) treated the appeal filed by the assessee before him as infructuous and dismissed the same. 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 rightly contended by the ld. Counsel for the assessee, as a result of quashing of the order of the ld. CIT passed under section 263 by the Tribunal, the consequential order passed by the Assessing Officer under section 143(3) read with section 263 had become non-est in the eyes of law and the ld. CIT(Appeals) 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(Appeals) to this effect and cancel the assessment made by the Haldia Petrochemicals Limited Assessing Officer under section 143(3) read with section 263 of the Act vide an order dated 03.03.2014.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on January 18th, 2019.