2012 (4) TMI 790 - AT - Income Tax

Summary

Issues involved: Appeal against order quashing assessment order passed u/s 263/143(3) of the I.T. Act, 1961.

Summary:
The appeal by the Revenue challenged the order of the learned CIT(A)-XIII, New Delhi dated 16th November, 2011, which quashed the assessment order passed by the Assessing Officer u/s 263/143(3) of the I.T. Act, 1961. The ITAT in ITA No.678/Del/2010 had previously quashed the order passed u/s 263, leading to the CIT(A) quashing the subsequent assessment order dated 28.12.2010. The Revenue appealed this decision.

The Hon'ble Jurisdictional High Court, in ITA No.973/2011, directed the CIT to pass a fresh order u/s 263 after hearing the assessee. The High Court modified the ITAT's decision and set aside the matter back to the CIT for a fresh order u/s 263. As a result, the assessment order dated 28.12.2010 could not survive without the original order u/s 263 dated 31.12.2009. The learned CIT(A) was deemed justified in quashing the assessment order dated 28.12.2010. The Assessing Officer was given the liberty to pass a fresh assessment order in accordance with the law.

Ultimately, the appeal of the Revenue was dismissed, and the decision was pronounced in the open Court on 17th April, 2012.