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Facts
The assessee appealed against a revisionary order under Section 263 of the Income Tax Act, which originated from an assessment order under Section 143(3). During the proceedings, it emerged that the original assessment order had already been challenged before the CIT(A), who allowed the assessee's claim for exemption under Sections 11 and 12, leading to an effect-giving order by the AO.
Held
The Tribunal held that since the original assessment order, which was the basis for the revisionary order, had been overturned by the CIT(A) and an effect-giving order passed by the AO, the substratum of the revisionary order impugned before the Tribunal no longer existed. Consequently, the grounds of the current appeal became academic.
Key Issues
Whether an appeal against a revisionary order under Section 263 becomes academic when the underlying assessment order has been overturned by the CIT(A), and an effect-giving order for exemption under Sections 11 and 12 has been passed.
Sections Cited
143(3), 263, 11, 12
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHES: G : DELHI
Before: DR. B.R.R. KUMAR & SHRI ANUBHAV SHARMA
ORDER
PER ANUBHAV SHARMA, JM:
This appeal preferred by the assessee is against the order dated 31.03.2022 of the Commissioner of Income-tax (Exemption), Delhi [hereinafter referred as ‘the ld. Revisionary Authority’] in Revision No.CIT(EXEMPTION), DELHI/Revision-263/100000323525/2022 arising out of the order dated 31.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the DCIT, Circle EXEMP 2(1), Delhi (hereinafter referred to as the Ld. AO).
Heard and perused the record.
It transpired during the hearing that the assessee had come before this Tribunal challenging the impugned order u/s 263 of the Act and, subsequently, the effect giving order stands passed which has rendered the grounds academic.
It comes up from the order dated 31.03.2023 passed u/s 143(3) r.w.s. 263 of the Act that the original assessment order dated 31.12.2019, which is subject matter of the order passed by ld. Revisionary Authority, was also challenged in first appeal before the ld.CIT(A) and the ld. CIT(A), vide order dated 06.02.2023 had allowed the appeal of the assessee directing the AO to allow exemption u/s 11 and 12 of the Act as the jurisdictional Tribunal has allowed relief to the assessee in AY 2014-15. Accordingly AO has passed the effect giving order. The ld. DR could not dispute the aforesaid. Thus, the substratum of the order passed by the ld. Revisionary Authority which is impugned before us falls and, consequently, we are inclined to dismiss the appeal.
Order pronounced in the open court on 22.03.2024.