SHREE RAM SALT WORKS,GANDHIDHAM vs. THE PR. CIT-1, RAJKOT, RAJKOT

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ITA 6/RJT/2021Status: HeardITAT Rajkot14 June 2023AY 2015-16Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the assessee was no longer aggrieved by the PCIT's order as the subsequent assessment was finalized without additions. Therefore, the assessee requested to withdraw the appeal.

What were the facts?

The assessee filed an appeal against an order passed by the Principal Commissioner of Income Tax (PCIT) under section 263 of the Income Tax Act. Subsequently, a revised assessment order was passed accepting the assessee's return of income without any additions.

What were the issues?

Whether the PCIT's revision order under Section 263 was justified and whether the appeal filed by the assessee should be withdrawn due to a subsequent favorable assessment.

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, RAJKOT BENCH, RAJKOT

Before: SMT. ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Kalpesh Doshi, A.R
For Respondent: Shri Shramdeep Sinha, CIT DR
Hearing: 06.06.2023

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

1.

This appeal has been filed by the assessee against the order passed by the Ld. Principal Commissioner of Income Tax, (in short “Ld. Pr.CIT”), Rajkot-1 in Order No. ITBA/REV/F/REV5/2020-21/1029186101(1) vide order dated 23.12.2020 passed for Assessment Year 2015-16.

2.

The assessee has taken the following grounds of appeals:-

“1. That, the Learned Principal CIT has wrongly held that the order passed u/s 143(3) is erroneous and prejudicial to the interest of the Revenue and wrongly passed order u/s 263 of the I.T. Act.

Shree Ram Salt Works vs. Pr.CIT Asst.Year –2015-16 - 2 - 2. The Learned Principal CIT has grossly erred in law and on facts in not appreciating that in order to invoke section 263, two conditions must be fulfilled viz. that the impugned assessment order must be erroneous and the error must be prejudicial to the interest of the revenue. In the present case ld.AO has passed the assessment order u/s 143(3) after making various enquiries from appellant, calling for various details and the appellant has duly submitted the said details, therefore there was no error in the impugned assessment order so as to justify action u/s 263 of the Act. Under the circumstances, the very assumption of power u/s 263 of the I.T. Act is unjustified and bad-in-law and therefore order u/s 263 of the Act deserved to be quashed.

3. That, the learned Principal CIT has wrongly applied the Explanation 2 to Section 263(1) of the I.T. Act for the year under consideration.

4. That, the Learned Principal CIT has wrongly disallowed the interest expenditure on advances to associate or sister concern and failed to consider the principal of commercial expediency and the financial position of the assessee as the assessee is also having various non-interest bearing fund.”

3.

Before us, the counsel for the assessee, vide letter dated 04-06-2023, submitted that the assessment for the year under consideration was finalised vide order dated 10-11-2017 by accepting the return of income filed by the assessee. Thereafter, order under section 263 of the Act was passed on 23-12- 2020 by PCIT, against which the assessee filed appeal before ITAT, Rajkot. Subsequent to revision proceedings, assessment under section 143(3) r.w.s. Shree Ram Salt Works vs. Pr.CIT Asst.Year –2015-16 - 3 - 263 has been completed and the assessing officer has passed order dated 22- 03-2022, wherein the return of income filed by the assessee has been duly accepted by the AO. The copy of the order dated 22-03-2022 has been produced before us for our perusal. Accordingly, since the assessment order has been passed without making any addition, the assessee is no longer aggrieved by the order of PCIT and therefore, the assessee has requested that he would like to withdraw the appeal filed before ITAT, Rajkot.

4.

Accordingly, in view of the assessee’s request for withdrawal of appeal, the appeal of the assessee is dismissed as withdrawn.

5.

In the result, the appeal of the assessee is dismissed as withdrawn. This Order pronounced in Open Court on 14/06/2023

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