DCIT CEN CIR 1, THANE vs. KUNAL PRAVINCHANDRA GALA, THANE

At the outset the learned counsel for the assessee submitted that the appeal filed by the Revenue is not maintainable for the reason that the present appeal arise out of the assessment order passed under Section 143(3) r.w.s. 153A and Section 263 of the Income Tax Act (hereinafter “the Act”). In other words it is submitted that this appeal is arising out of the consequential order passed giving effect to the order passed under Section 263 of the Act. The learned counsel for the assessee submitted that this Tribunal in and 1313/Mum/2012 dated 05.04.2016 quashed the order of the Commissioner of Income Tax passed under Section 263 of the Act for assessment years 2008-09 and 2009-10 and since the order passed by the CIT under Section 263 has been quashed by the Tribunal, consequential order passed by the AO giving effect to the Kunal Pravinchandra Gala order passed by the CIT under Section 263 will not survive and the consequently the present appeal filed by the Revenue, which is arising out of the consequential order passed by the AO giving effect to the order of the CIT also does not survive.

After hearing the learned counsel for the assessee and perusing the orders of the authorities below we are of the view that the present appeal filed by Revenue will not survive in view of the fact that the present appeal is arising out of the assessment order passed giving effect to the order passed by the CIT under Section 263 of the Act and whereas the Tribunal vide order dated 05.04.2016 in and 1313/Mum/2012 has set aside the order passed by the CIT under Section 263 of the Act. In these circumstances the appeal filed by Revenue will not survive, hence dismissed.