M/S. SHANTI SARUP & SONS PVT. LTD.,MEERUT vs. ACIT, MEERUT

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ITA 1718/DEL/2015Status: DisposedITAT Delhi12 April 2017AY 2008-094 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the order under Section 263 was set aside, the subsequent assessment order based on it became infructuous and void. Therefore, the assessee's appeal also became infructuous.

What were the facts?

The Assessing Officer (AO) passed an assessment order under Section 263/143(3) increasing the total income. The CIT(A) partly allowed the assessee's appeal. Subsequently, the ITAT set aside the order passed under Section 263.

What were the issues?

The maintainability of an assessment order passed under Section 263/143(3) when the underlying Section 263 order is set aside by a higher authority.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “G” BENCH,

Before: SHRI R.K. PANDA & SMT. BEENA A. PILLAI

For Appellant: Shri Rohit Aggarwal, ACA
For Respondent: Shri S.S. Rana, CIT- DR
Hearing: 12.04.2017Pronounced: 12.04.2017

PER R.K. PANDA, ACCOUNTANT MEMBER:-

1.

This appeal filed by the assessee is directed against the order dated 26.02.2015 of the CIT(A), Meerut relating to A.Y. 2008-09.

2.

The ld. Counsel for the assessee, at the very outset, submitted that the A.O had passed assessment order u/s 263/143(3) of the Income-tax Act, 1961 on 26.02.2014 determining the total income at Rs. 58,31,820/- as against the returned income of Rs. 18,12,748/-.

3.

The ld. CIT(A) vide order dated 26.02.20015 partly allowed the appeal of the assessee. Referring to the decision of the Tribunal in assessee’s own case in order dated 07.04.2016 for A.Y 2008-09, he drew the attention of the bench to para 16 of the order and submitted that the Tribunal has set aside the order passed u/s 263 of the Act. Therefore, once the proceedings u/s 263 of the Act are not sustained and cancelled, subsequent orders to give effect to the orders passed u/s 263 of the Act are not maintainable and become null and void. He accordingly submitted that the appeal filed by the assessee becomes infructuous.

4.

The ld. DR fairly conceded that the Tribunal has set aside the order passed u/s 263 of the Act by the ld. CIT.

5.

After hearing both the sides, we find the A.O had passed order u/s 143(3) of the Act dated 06.12.2010 on total loss of Rs. 18,12,748/- as against the returned loss of Rs. 18,47,748/-. The ld. CIT, vide order passed u/s 263 of the Act on 12.3.2013 revised the order passed u/s 143(3) of the Act with certain directions. Subsequently, the A.O passed the order u/s 263/143(3) of the Act on 26.4.2014 determining the total income at Rs. 58,31,820/-. The ld. CIT(A) gave part relief to the assessee. In the meantime, the assessee had preferred an appeal against the order passed u/s 263 of the Act before the Tribunal. We find the Tribunal, vide order dated 07.04.2016 for A.Y 2008-09, set aside the order passed u/s 263

Act by the ld. CIT. Therefore, since the order u/s 263 of the Act was the basis for completed assessment u/s 263/143(3) of the Act which has been partly upheld by the ld. CIT(A) and since the Tribunal has already set aside the order passed u/s 263 of the Act, therefore, the order passed u/s 143(3)/263 of the Act has become infructuous and null and void. Therefore, the appeal filed by the assessee also becomes infructuous and has to be dismissed. We hold accordingly.

6.

In the result, the appeal filed by the assessee, being infructuous, is dismissed. Order pronounced in the open court at the time of hearing itself i.e. on 12.04.2017.

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