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Facts
The assessee filed its return of income, and the assessment was framed under section 143(3) of the Act. The CIT invoked powers under section 263 to set aside the Assessing Officer's order. The assessee challenged the assumption of jurisdiction by the CIT. This Tribunal had previously quashed the revision order under section 263.
Held
The Tribunal held that since the foundation for framing the order under section 143(3) was the order of the CIT under section 263, and that order was quashed by this Tribunal, the present order must also fall. Therefore, there was no reason to interfere with the findings of the CIT(A).
Key Issues
Whether the CIT(A) erred in holding the assessment order invalid and the appeal infructuous without deciding on merit, when the basis of the assessment order (CIT's revisionary order) was previously quashed by the Tribunal.
Sections Cited
143(3), 263, 260A, 115JB
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Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HONBLE & SHRI SANDEEP SINGH KARHAIL, HONBLEShri Kirit Kamdar Shri Ajay Chandra
O R D E R PER NARENDRA KUMAR BILLAIYA (AM)
This appeal by the revenue is preferred against the order dated 29.11.2023 by National Faceless Appeal Centre, Delhi [hereinafter in short “Ld. CIT(A)”] pertaining to A.Y.2016-17.
(A.Y: 2016-17) M/s. Anand Projects Ltd., 2. The grievance of the revenue read as under: -
1. The Ld. CIT(A) erred in holding the assessment order u/s.143(3) r.w.s. 263 of the Act dated 31.03.2022 as 'invalid' as on the date of passing order, the order was legally valid.
The Ld. CIT(A) erred in holding the assessment order u/s.143(3) r.w.s. 263 of the Act dated 31.032022 as 'invalid' and appeal as infructuous without deciding the various grounds 'on merit'. 3. The ld. CIT(A) erred in holding the assessment order u/s.143(3) r.w.s. 263 of the Act dated 31.03.2022 as 'invalid' and appeal as infructuous. Revenue had filed appeal u/s 260A with ITXAL No. 12727/2023 on 04.05.2023 against order in dated 29.06.2022 before the Hon'ble High Court. 4. On the facts and circumstances of the case and in law the Ld. CIT(A) has erred in not deciding the grounds of appeal
on merit.
5. The appellant craves the leave to add, amend, alter and/or delete any of the grounds of appeal as above.
The root cause for the quarrel is the assessment order dated 31.03.2022 framed under section 143(3) r.w.s. 263 of Income-tax Act, 1961 (in short “Act”). Facts of the case in hand show that, the assessee filed its return of income declaring total income of ₹.29,52,15,120/- on 10.10.2016 under normal provisions and book profit under section 115JB of the Act at ₹.29,03,75,843/-. The assessment was framed under section 143(3) of the Act vide order dated 30.12.2018 wherein the return of income was accepted as such.
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(A.Y: 2016-17) M/s. Anand Projects Ltd., 4. Invoking the powers conferred upon him by the provisions of section 263 of the Act the Ld. Pr.CIT set-aside the order passed by the Assessing Officer with certain directions. The assessee challenged the assumption of jurisdiction under section 263 by the Ld. Pr.CIT before the Tribunal and this Tribunal vide order dated 29.06.2022 in has quashed the revision order under section 263 of the Act.
SUBLATO FUNDAMENTO CADIT OPUS meaning thereby in the case the foundation is removed the super structure falls.
The foundation for framing the order under section 143(3) of the Act was the order of the Ld. Pr.CIT under section 263 of the Act. Since the foundation has been removed by this Tribunal by quashing the order under section 263 of the Act, the super structure that is the present order must fall. We therefore do not find any reason to interfere with the findings of the Ld. CIT(A). Appeal filed by the revenue is dismissed.
In the result, appeal filed by the revenue is dismissed.
Order pronounced in the open court on 21st May, 2024. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai / Dated 21.05.2024 Giridhar, Sr.PS
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