2018 (1) TMI 1531 - AT - Income Tax

Rectification u/s 154 - HELD THAT - Assessment order was passed on 20.03.2017. But the revenue has filed the appeal on 31.08.2015 before the assessment order consequent to the directions of the DRP is passed. As per the provisions of section 253(1)(d), an order passed by the AO under subsection (3) of section 143 or section 147 or section 153A or section 153C pursuant to the directions of the DRP or an order passed under section 154 in respect of such order, is appealable before the Tribunal and not the directions of the DRP. In the light of these facts, we find that the appeal filed by the revenue is not maintainable as it is not filed against an appealable order. We accordingly dismiss the same being not maintainable. Since the assessee has categorically stated that its appeal and CO have become academic after the dismissal of the revenue s appeal as it has already got relief in rectification. In the light of the statement of the assessee, we dismiss the appeal and CO of the assessee as being infructuous and academic.

Summary

Issues:
1. Maintainability of revenue's appeal against the directions of the DRP instead of the assessment order.
2. Consequences of the revenue's appeal being dismissed on the appeals and cross objections filed by the assessee.

Analysis:

Issue 1: Maintainability of Revenue's Appeal
The cross appeals were filed by the assessee and the revenue relating to the assessment year 2010-11. The contention arose regarding the maintainability of the revenue's appeal as it was filed against the directions of the Dispute Resolution Panel (DRP) rather than the assessment order passed after the DRP's directions. The counsel for the assessee argued that the appeal should have been against the assessment order, not the DRP's directions. It was highlighted that only the assessment order passed consequent to the DRP's directions is appealable before the Tribunal, as per the provisions of section 253(1)(d). The DRP had issued directions, which were rectified later, leading to the final assessment order. The Tribunal observed that the revenue's appeal was not maintainable as it was not filed against an appealable order, and thus, dismissed it.

Issue 2: Consequences on Assessee's Appeals
Following the dismissal of the revenue's appeal, the counsel for the assessee stated that their appeal and cross objections had become academic as relief was already obtained through rectification. In light of this, the Tribunal dismissed the appeal and cross objections of the assessee as being infructuous and academic. Consequently, all the appeals of the revenue and the assessee, along with the cross objections by the assessee, were dismissed by the Tribunal.

In conclusion, the Tribunal ruled that the revenue's appeal was not maintainable as it was not filed against an appealable order, leading to its dismissal. Subsequently, the assessee's appeals and cross objections were also dismissed as they were deemed academic following the relief obtained through rectification.