2012 (1) TMI 413 - AT - Income Tax

Summary

Issues involved: Appeal against order of Commissioner of Income-tax (Appeals) being dismissed as not maintainable.

The appeal was filed by the assessee against the order of the Commissioner of Income-tax (Appeals) at Bangalore dated 03.09.2010, arising from the assessment completed u/s 143(3) of the Income-tax Act, 1961. The assessee, a Government of Karnataka undertaking, was incorporated to canalize the sale of Indian Made Liquor and Beer in the state. The CIT(A) revised the assessment u/s 263 of the Income-tax Act, and during the pendency of the appeal, the Assessing Officer passed a consequential order u/s 143(3) read with sec. 263. The CIT(A) held the assessment order u/s 143(3) to be non-est and dismissed the appeal, leading to the current appeal before the Tribunal.

The learned counsel for the assessee argued that the revision order u/s 263 did not address the privilege fee disallowed by the Assessing Officer, making the appeal maintainable. On the other hand, the learned DR supported the CIT(A)'s order. After considering the contentions and evidence, the Tribunal found that the order u/s 143(3) was set aside by the revision order u/s 263, necessitating a denovo consideration of the assessment by the AO. As the assessment order u/s 143(3) dated 30.10.2006 was rendered non-est, the appeal against it was deemed not maintainable. Consequently, the Tribunal upheld the CIT(A)'s decision and dismissed the assessee's appeal.

In conclusion, the Tribunal pronounced the order on 18th Jan, 2012, dismissing the appeal of the assessee.