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Facts
The Revenue Department filed appeals against the orders dated 19.04.2024 passed by the Ld. Commissioner of Income Tax (Appeals). These appeals pertained to assessment years 2011-12 and 2013-14. The impugned orders allowed the assessee's appeals.
Held
The Tribunal noted that the assessment orders were passed under section 143(3) r.w.s. 263 of the Act, pursuant to a direction/order dated 26.03.2018 by the Ld. CIT. However, a previous order by the Tribunal had set aside the Pr. CIT's orders dated 26.03.2018. Consequently, the assessment orders, being based on a quashed foundation, were considered void-ab-initio.
Key Issues
Whether the assessment orders, passed pursuant to a section 263 direction that was subsequently quashed, are valid.
Sections Cited
143(3), 263, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI RATNESH NANDAN SAHAY
Per : Narender Kumar Choudhry, Judicial Member:
These appeals have been preferred by the Revenue Department against the orders even dated 19.04.2024 impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals)-47, Mumbai (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2011-12 & 2013-14. even dated 26-03 -2018 for the A.Ys. 2011-12 & 2013-14 have been passed u/s 143(3) r.w.s. 263 of the Act in pursuance to the direction/order dated 26.03.2018 u/s 263 of the Act by the Ld. CIT- Mumbai. Against the aforesaid assessment orders the Assessee has preferred first appeals before the Ld. Commissioner. The Ld.
Commissioner vide impugned orders even dated 19.04.2024 for the A.Ys.
2011-12 & 2013-14, allowed the appeals of the Assessee by taking into consideration the peculiar facts to the effect that the Hon’ble Tribunal vide a combined order dated 25.11.2022 for A.Y 2011-12 & 2013-14 in & 2965/M/2018 allowed the appeals of the Assessee and consequently set aside the orders dated 26-03-2018 passed by the Pr.
CIT u/s 263 of the Act, on the basis of which the assessments under consideration have been framed.
Both the parties have not denied the aforesaid facts. Thus, considering the peculiar facts and circumstances in totality, as the foundation i.e. the Directions/order even dated 26.03.2018 passed by the Pr. CIT u/s 263 has been quashed, hence the impugned assessment orders also automatically collapsed and/or lost its existence and therefore the same have rightly been quashed being void-ab-initio by the Ld. Commissioner, hence the impugned orders require no interference.
Consequently, the appeals filed by the Revenue Department are liable to be dismissed.
In the result, both the appeals under consideration stands dismissed.
Order pronounced in the open court on 11.09.2024.