THE MAYYANAD REGIONAL CO-OP BANK LTD,KOLLAM vs. THE ITO, KOLLAM

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ITA 50/COCH/2021Status: DisposedITAT Cochin10 February 2022AY 2016-173 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessment order under Section 143(3) was no longer in existence, the revision order passed under Section 263, which was based on that assessment order, also had no foundation and was liable to be quashed.

What were the facts?

The assessee's appeal was against an order passed by the Principal CIT under Section 263. The assessment order under Section 143(3) for AY 2016-17, which was the basis for the revision, had been previously restored to the AO by the ITAT. This restoration meant the original assessment order no longer survived.

What were the issues?

Whether a revision order under Section 263 can survive when the underlying assessment order has been set aside and restored to the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 80P(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri George Mathan, JM & Shri B.R. Baskaran, AM

For Appellant: Shri G. Surendranath Rao, CA
For Respondent: Shri V. Roy Jose, CIT-DR
Hearing: 10.02.2022Pronounced: 10.02.2022

This is an appeal filed by the assessee against the order of the Principal CIT, Thiruvananthupuram passed under Section 263 of the Income Tax Act, 1961 in File No. C.No.412/J/263/RP-59/2019- 20/PCIT/TVPM dated 08.03.2021 for AY 2016-17.

2.

Shri G. Surendranath Rao, CA represented the assessee and Shri V. Roy Jose, CIT-DR represented Revenue.

3.

It was submitted by the learned A.R. that the Principal Commissioner of Income Tax had invoked his powers of revision under Section 263 of the Act in respect of the assessment order dated 26.12.2018 for AY 2016-17. It was the submission that the assessment order under Section 143(3) of the Act dated 26.12.2018 was subject matter of the appeal before the learned CIT(A) and subsequently before the ITAT. It was submitted that this Tribunal had in its order in dated 16.12.2019 for ay 2016-17 had restored the issues to the file of the 2 The Mayyanad Regional Co-Op Bank Ltd. AO and had directed to examine the activities of the assessee and determine whether the activities are in compliance with the activities of a co-operative society functioning under the Kerala Co-operative Societies Act, 1969 and accordingly grant deduction under Section 80P(2) of the Act.This was following the decision of the Hon'ble Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd. It was the submission that consequent to the order of the Tribunal dated 16.12.2019 the order passed under Section 143(3) of the Act dated 26.12.2018, no more survives, the revision order passed under Section 263 of the Act on 08.03.2021 do not have any leg to stand in so far as the very foundation being the assessment order under Section 143(3) of the Act dated 26.12.2018 no more survives, the order under Section 263 of the Act is liable to be quashed.

4.

In reply the learned D.R. supported the order of the Pr. CIT.

5.

We have considered the rival contentions. A perusal of the order of the Coordinate Bench of this Tribunal in dated 16.12.2019 clearly shows that the order dated 26.12.2018 passed under Section 143(3) of the Act no more survives. Consequently the very foundation of the order passed under Section 263 of the Act being non- extinct the same not more survives. Hence, the order passed under Section 263 of the Act is quashed.

6.

In the result, the appeal filed by the assessee is allowed.

Dictated and pronounced in the open Court on 10th February, 2022.

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