RAVI ESTATE (P) LTD,NEW DELHI vs. PR. CIT-7, NEW DELHI

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ITA 420/DEL/2021Status: DisposedITAT Delhi29 May 2023AY 2015-163 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that no consequential order had been passed by the Assessing Officer within the prescribed period of limitation. Therefore, the directions of the PCIT could not be implemented, rendering the appeal infructuous.

What were the facts?

The assessee filed an appeal against an order passed by the Principal Commissioner of Income-tax (PCIT) under Section 263. The PCIT's order was passed on March 31, 2021. The Assessing Officer was required to pass a consequential order within one year from the end of the financial year in which the Section 263 order was passed.

What were the issues?

Whether the appeal filed against a Section 263 order is maintainable when the consequential order has not been passed within the statutory time limit.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DLEHI

Before: SHRI G.S. PANNU & SHRI SAKTIJIT DEY

For Appellant: CA &
For Respondent: Ms. Sapna Bhatia, CIT-DR
Hearing: 17.05.2023Pronounced: 29.05.2023

Captioned is an appeal filed by the assessee challenging the order dated 31.03.2021 passed u/s. 263 of the Income-tax Act, 1961 by ld. Principal Commissioner of Income-tax (PCIT)-7, Delhi pertaining to the assessment year 2015-16.

2.

We have heard Shri Sachin Kumar, learned authorised representative of the assessee and Ms. Sapna Bhatia, ld. CIT-DR. On perusal of record, it is observed that the impugned order of ld. PCIT was passed on 31.03.2021. As per statutory provisions, the Assessing Officer has to pass the consequential order within a period of one year from the end of the financial year, in which the order u/s. 263 of the Act was passed. In the facts of the present appeal, order u/s. 263 of the Act was passed on 31.03.2021. Therefore, a query was made to the ld. Representatives appearing for the assessee and the Revenue to intimate the Bench regarding the status of consequential order in pursuance to the order passed u/s. 263 of the Act. In response, ld. Counsel for the assessee submitted that no such order has been passed by the Assessing Officer.

Learned departmental representative was not in a position to controvert the aforesaid contention of the assessee. Thus, considering the fact that no consequential order has been passed in pursuance to the impugned order of the revisionary authority within the period of limitation, the directions of ld. PCIT in the impugned order cannot be implemented.

Thus, for all practical purposes, the present appeal has become infructuous. Accordingly, we are inclined to dismiss the appeal and consign it to records. However, liberty is granted to the assessee to seek revival of appeal, in case, at a later point of time, it is found that the Assessing Officer has passed the consequential order in pursuance to the order passed u/s. 263 of the Act.

3.

In the result, appeal is dismissed.

Order pronounced in the open court on 29/05/2023.

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