DCIT, BANGALORE vs. M/S IBM INDIA PVT. LTD.,, BANGALORE

The only grievance of the revenue in this appeal is that the CIT(A) has erred in allowing the appeal of the assessee by placing reliance on the order of the Tribunal in the assessee’s own M/s.IBM India Pvt. Ltd. Page 2 of 3 case without appreciating the fact that the same has not become final in view of the departmental appeal u/s 260A of the Income- tax Act, 1961 [hereinafter referred to as 'the Act' for short] pending before the Hon’ble High Court of Karnataka.

Brief facts of the case are that the assessment order u/s 143(3) of the Act was passed on 26/12/2008 assessing the total income of the assessee at Rs.5,46,19,33,785/-. Subsequently the CIT invoked jurisdiction u/s 263 of the Act and passed an order dated 21/3/2011 setting aside the assessment order. Against the same, assessee preferred an appeal before the ITAT and the ITAT by order dated 05/07/2013 has quashed the order u/s 263 restoring the assessment order passed u/s 143(3). Meanwhile, AO had passed the assessment order u/s 143(3) r.w.s 263 of the Act giving effect to the order of the CIT u/s 263 of the Act against which, the assessee preferred an appeal before the CIT(A), who allowed the same observing that the order u/s 263 has already been quashed by the Tribunal and therefore the appeal is infructuous and does not survive. Against this order of the CIT(A), revenue is in appeal before us.

Having heard both the parties and having gone through the material on record and also the order of the Tribunal dated 05/07/2013 in the assessee’s own case against order u/s 263 of the Act dated 21/3/2011, we find that the order u/s 263 has been quashed by the Tribunal. Therefore, the order giving effect to the M/s.IBM India Pvt. Ltd. Page 3 of 3 order u/s 263 does not survive and the CIT(A) has rightly held the appeal to be infructuous.

In the result, the revenue’s appeal is dismissed.