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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI SUNIL KUMAR YADAV & SHRI A.K. GARODIA
Date of hearing : 30.06.2016 Date of Pronouncement : 29.07.2016 O R D E R Per Sunil Kumar Yadav, Judicial Member
This appeal is preferred by the Revenue against the order dated 16.07.2015 of the CIT(Appeals)-2, Bengaluru for the assessment year 2006-07 inter alia on the following grounds:- “
1. The order of the Ld. CIT(A) is contrary to the facts and circumstances of the case and hence not sustainable.
2. The CIT(A) has erred in relying on the orders passed by the Hon'ble ITAT, Bangalore Bench 'A' for the A.Y.s 2006-07 and 2007-08 in the assessee's case against the orders u/s.263 of the Act passed by the Commissioner of Income Tax, Bangalore -
I, Bangalore, and has stated that the CIT(A) finds merit in the appellant's plea that the revised assessment ears (sic) passed by the AO's u/s.143(3) r.w.s.263 of the Act under appeal become null and void and do not survive. The CIT(A) cancelled the reassessment orders passed by the AO's under appeal for the A.Y.s 2006-07 and 2007-08 as the appeal u/s. 260A has been filed for A.Y.s 2006-07 and 2007-08 against the order passed by the Hon'ble ITAT quashing the order u/s.263. 3) For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored. 4) The appellant craves leave to add, alter, amend and/or delete any of the grounds mentioned above.”
During the course of hearing, our attention was invited to the fact that the order passed u/s. 263 of the Income-tax Act, 1961 [“the Act”] by the CIT was set aside by the Tribunal. In light of the order of the Tribunal, the CIT(Appeals) has annulled the assessment which has been framed consequent to the order of the CIT passed u/s. 263 of the Act. The appeal was filed by the department only to keep the issue alive as they have preferred an appeal before the Hon'ble High Court of Karnataka against the order of the Tribunal quashing the order u/s. 263 of the CIT.
Having carefully examined these facts, we are of the view that till the operation of the order of the Tribunal is stayed by the Hon’ble High Court of Karnataka, it holds the field and the assessment order passed consequent thereto deserves to be annulled. We therefore find no infirmity in the order of CIT(Appeals), who has rightly annulled the assessment in the light of the order of the Tribunal quashing the order u/s. 263 of the Act passed by the CIT.
In the result, the appeal by the Revenue is dismissed.
Pronounced in the open court on this 29th day of July, 2016.