DIPAKBHAI LALLUBHAI PATEL,AHMEDABAD vs. THE PR. CIT-1, VADODARA

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ITA 162/AHD/2022Status: DisposedITAT Ahmedabad13 March 2024AY 2017-18Bench: Ms SUCHITRA KAMBLE (Judicial Member), SHRI WASEEM AHMED (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the AO, in compliance with the Section 263 directions, did not make any additions or disallowances. As there was no grievance for the assessee against the PCIT's findings, the assessee instructed to withdraw the appeal.

What were the facts?

The assessee appealed against an order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263, which deemed the original assessment order erroneous and prejudicial to the revenue. Subsequently, the Assessing Officer (AO) passed a fresh order giving effect to the PCIT's directions, but no additions or disallowances were made to the assessee's total income.

What were the issues?

Whether the PCIT's order under Section 263 was justified, and if the subsequent AO order, which made no additions, rendered the appeal infructuous.

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, ‘’ C’’ BENCH, AHMEDABAD

Before: Ms SUCHITRA KAMBLE & SHRI WASEEM AHMED

For Appellant: Ms Kinjal Shah, AR
Hearing: 27/02/2024Pronounced: 13/03/2024

आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:

1.

The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Principal Commissioner of Income Tax-1, Vadodara, arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2017-2018.

2.

The only issue raised by the assessee is that the Ld. PCIT under section 263 of the Act erred in holding the assessment framed u/s 143(3) of the Act as erroneous in so far prejudicial to the interest of the revenue.

3.

The assesee vide letter dated 11/02/2024, has submitted as detailed below:

6. However, in the meanwhile the Income-tax Department assessment unit passed order dated 21-3-23 giving effect to the order of Pr. Comm. Of Income-tax dated 12-1-2022 after discussing various issue. During course of proceeding giving effect to the order of Pr. Comm. Of Income-tax the Appellant was called and volumnus details & information & explanation are taken on record and Assessing Officer was fully satisfied that the original order passed by him dated 26-11-2019 was neither erroneous nor prejudious to the interest of Revenue and he recomputed the Total Income in his order dated 21-3-2023 passed u/s. 143(3) r.w.s.263 r.w.s.144B at Rs. 2,05,08,690/- as Total Income determined after order u/s. 263 passed by Pr. CIT. Conclusion:

1. 1. We have to request your Honours to kindly consider the above facts of the case and it is submitted that now in view of the fresh order on 21-3-22 of Income-tax Officer giving effect to the order of Pr. CIT u/s.263(3) dated 4-3-2022 the said has become infrastructureous and apparently it looks that of AO dated the said order u/s. 143(3) dated 13-08-2018 was not erroneous and not prejudicial to the interest of Revenue and the no harm has been caused to the Income-tax Department.

2. In view of above facts and circumstances the Appeal filed by Appellant on 11-5-2022 challenging the order of Pr.CIT u/s.263 dated 21-3-2022 he allowed and relief chanced be allow.

4. In view of the above, the Ld. AR before us submitted that the AO in consequence to the direction issued u/s 263 of the Act, has not made in addition/ disallowance to the total income of the assessee. As such the income declared in the return of income was accepted by the AO in-consequence to the direction issued u/s 263 of the Act. Therefore, there is no grievance to the assessee against the findings of the Ld. PCIT u/s 263 of the Act. Hence, the assessee has instructed to withdraw appeal filed before the ITAT.

5.

On the other hand, the Ld. DR could not controvert the argument advanced by the Ld. AR for the assessee.

6.

We have heard the rival contentions of both the parties and perused the materials available on record. Since there was no grievance to the assessee against the direction of the Ld. PCIT and therefore the appeal is dismissed as withdrawn.

7.

In the result, the appeal filed by the assessee is dismissed as withdrawn.

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