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Facts
The revenue (DCIT) appealed against the order of the CIT(A) which had quashed consequential proceedings initiated under Section 263 of the Income-tax Act, 1961. These consequential proceedings followed an assessment order passed under Section 144 read with Section 263. The underlying issue was that the original revision order under Section 263, which formed the basis for these proceedings, had already been quashed by the Tribunal.
Held
The Tribunal held that since the original revision order under Section 263 of the Act, which was the foundation for the consequential proceedings, had already been quashed by the Tribunal, those consequential proceedings could not legally survive. The Tribunal found no error in the CIT(A)'s decision to quash these consequential proceedings. Consequently, the revenue's appeal was dismissed.
Key Issues
Whether consequential proceedings initiated under Section 263 of the Income-tax Act, 1961, can be sustained when the original revision order that led to them has already been quashed by the Tribunal.
Sections Cited
Section 144, Section 263, Income-tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI
Before: SHRI M. BALAGANESH & SHRI ANUBHAV SHARMA
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in AY 2016-17, arises out of the order of the Commissioner of Income Tax (Appeals)-3, Gurgaon [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. 11408/2015-16 dated 27.07.2023 against the order of assessment passed u/s 144 read with section 263 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 27.03.2022 by the Assessing Officer, DCIT, Central Circle, Karnal (hereinafter referred to as ‘ld. AO’).
On perusal of the ground of appeal filed by the revenue, it is very clear that the order passed by the ld PCIT u/s 263 of the Act stood quashed by this Tribunal. The present proceeding is consequential proceeding u/s 263 of the Act. When the original proceedings i.e. revision order u/s 263 of the Act , stood quashed by the Tribunal, the consequential proceeding would not survive in the eyes of the law. Hence, there is no infirmity in the order of the ld CIT(A) in quashing the consequential proceedings. Accordingly, the grounds raised by the revenue are dismissed.
In the result, the appeal of the revenue is dismissed.
Order pronounced in the open court on 11/03/2024.