DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE , KARNAL, KARNAL vs. BHAGWAN DASS, SIRSA

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ITA 2802/DEL/2023Status: DisposedITAT Delhi07 March 2024AY 2016-172 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal affirmed the CIT(A)'s decision, holding that consequential proceedings cannot survive once the foundational original revision order under section 263, upon which they were based, has been quashed by the Tribunal. Therefore, the CIT(A) correctly quashed the consequential proceedings.

What were the facts?

The revenue appealed against the CIT(A)'s order for AY 2016-17, which quashed consequential assessment proceedings initiated under sections 144 read with 263 of the Income-tax Act. These consequential proceedings followed a revision order passed by the PCIT under section 263, which was subsequently quashed by the Tribunal.

What were the issues?

Whether consequential assessment proceedings can legally continue when the primary revision order under section 263, which led to them, has been set aside by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 144,Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI

Before: SHRI M. BALAGANESH & SHRI ANUBHAV SHARMA

For Appellant: Shri Lalit Mohan, CA
Hearing: 07/03/2024Pronounced: 07/03/2024

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. 11409/2015-16 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’).

2.

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.

3.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on 07/03/2024.

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