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2018 (5) TMI 2083 - AT - Income TaxRevision u/s 263 - revision initiated agaist orders infructuous/ non-est in the eyes of law - HELD THAT - In the instant case, there is no ambiguity that the order passed by Ld. CIT u/s 263 of the Act in the case of assessee pertaining to assessment year 2009-10 was quashed 2016 (4) TMI 122 - ITAT AHMEDABAD - there remains no doubt that the order passed by Ld. CIT u/s 263 of the Act was held as unsustainable. Therefore, the order passed in consequent to the direction issued u/s 263 of the Act becomes infructuous. Hence, we find no reason to interfere in the order passed by the ld. CIT(A) on the ground that the consequential order passed u/s 143(3)/263 of the Act is not maintainable and thus the appeal filed becomes infructuous - Decided against revenue.
Issues:
1. Whether the Commissioner's order under section 263 of the Income Tax Act, 1961, making the assessment order infructuous is valid. Analysis: The appellate tribunal heard an appeal by the Revenue against the Commissioner of Income Tax(Appeals) order regarding an assessment under section 143(3) r.w.s. 263 of the Income Tax Act, 1961, for Assessment Year 2009-10. The Revenue contended that the Commissioner's order was infructuous. The assessment was revised by the Commissioner under section 263, but the Tribunal held the revision unsustainable. The Tribunal found that the Commissioner wrongly assumed power under section 263 as the assessment was not erroneous or prejudicial to the Revenue. The Tribunal cited legal precedents to support its decision. The Tribunal concluded that the assessment order was neither erroneous nor prejudicial to the Revenue, setting aside the Commissioner's order and restoring that of the Assessing Officer under section 143(3) of the Act. Consequently, the appeal filed by the assessee was allowed, and the Revenue's appeal was dismissed. The Tribunal emphasized that the order passed by the Commissioner under section 263 was unsustainable, rendering the consequential order under section 143(3)/263 infructuous. The Tribunal found no reason to interfere with the Commissioner's order, as the consequential order was not maintainable, leading to the dismissal of the Revenue's appeal. The additions made by the Assessing Officer in the giving effect order were deemed unsustainable. The Tribunal pronounced the order in open court on 24/05/2018.
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