JAWAHAR KESHARI,PATNA vs. ITO DEPARTMENT, PATNA

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ITA 155/PAT/2023Status: DisposedITAT Patna28 August 2023AY 2017-183 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the current appeal against the denovo assessment order is not maintainable before it. The assessee should have first appealed to the CIT(A). The order passed by the CIT under section 263 could have been challenged independently.

What were the facts?

The assessee filed a return of income, which was initially assessed under section 143(3). The CIT invoked section 263, deeming the assessment order erroneous and prejudicial to revenue, and directed a denovo assessment. A fresh assessment order was passed on March 25, 2023.

What were the issues?

Whether an appeal against a denovo assessment order, passed pursuant to a section 263 direction, is maintainable before the ITAT without first appealing to the CIT(A). Whether the order passed by the CIT under section 263 is independently appealable.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Rajesh Kumar

Per Rajpal Yadav, Vice-President (KZ):- The assessee has challenged the assessment order dated 25.03.2023 passed in A.Y. 2017-18 in an appeal before the Tribunal. It is pertinent to note that the assessee has filed his return of income for A.Y. 2017-18 declaring total income of Rs.3,67,690/-. His case was

1.

Assessment Year: 2017-2018 Jawahar Keshasri selected for limited scrutiny assessment and an assessment order was passed on 09.05.2019 under section 143(3).

2.

It emerges out from the record that ld. Commissioner took cognizance under section 263 of the Income Tax Act on the ground that assessment order passed by the ld. Assessing Officer is erroneous as well as prejudicial to the interest of revenue. Accordingly ld. CIT set aside the assessment order vide his order dated 26.02.2022 passed under section 263 of the Income tax Act. The ld. CIT has directed the ld. Assessing Officer to pass a denovo assessment order after carrying out the inquiries. In pursuance to the direction of the ld. CIT, the ld. Assessing Officer has passed a fresh assessment order dated 25.03.2023.

3.

On due consideration of the above facts and circumstances, we are of the view that the present appeal is not maintainable before the Tribunal. The assessee ought to have challenged this assessment order before the ld. CIT(A). During the course of hearing, ld. Counsel for the assessee has informed that since it is an assessment passed on the direction of the ld. CIT issued under section 263, therefore, he has challenged it. The order of the ld. CIT passed under section 263 on 26.02.2022 is challengeable in an appeal before the Assessment Year: 2017-2018 Jawahar Keshasri Tribunal independently and the assessee has not filed any appeal against such order. The assessee is at liberty to file any such appeal, if so advised and in case, any appeal is being filed that will be dealt with in accordance with law but presently this appeal is not maintainable, accordingly dismissed. It is further made clear that the assessee is at liberty to seek his remedy in appropriate form.

4.

In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on 28.08.2023.

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