2019 (3) TMI 2046 - AT - Income Tax

Validity of revision u/s 263 - Challenging the jurisdiction of Ld. PCIT in passing the impugned order questioning validity of assessment order passed by AO u/s 143(3) r.w.s. 144C(13) - non-disposal of aforesaid jurisdictional issue by learned Pr. CIT - HELD THAT - We find that the identical ground has already been decided 2018 (7) TMI 2330 - ITAT MUMBAI in view of non-disposal of aforesaid jurisdictional issue by learned Pr. CIT which is purely legal issue which goes to the root of the matter as to whether learned Principal CIT is competent and empowered to invoke its revisionary powers within provisions of Section 263 with respect to the assessment order of the AO which is passed u/s 143(3) r.w.s. 144C(13) of the 1961 Act in pursuance of direction issues by learned DRP .Several other contentions were also raised in grounds of appeal on merits but keeping in view the jurisdictional issue involved in this appeal which were raised before learned Principal CIT and which was not disposed of by learned Principal CIT in its revisionary order dated 28.03.2016 passed u/s. 263 of the 1961 Act we consider it appropriate and deem fit to restore this matter back to the file of learned Principal CIT for disposal of this jurisdictional ground which is a legal ground as to competence of learned Pr. CIT to revise an assessment order passed by the AO u/s 143(3) r.w.s. 144C(13) in pursuance to directions given by learned DRP and which in our considered view goes to the root of the matter along with all other grounds raised by the assessee to decide de-novo in proceedings u/s. 263 more so when both the parties have also agreed and conceded that this matter needs be restored to the file of learned Principal CIT for disposal of the jurisdictional ground and other grounds as the said jurisdictional issue despite being raised by the assessee before learned Pr. CIT in proceedings conducted u/s 263 was not decided by learned Pr. CIT vide its order dated 28.03.2016 passed u/s 263 of the 1961 Act. Thus we apply the same findings in the present case which are applicable mutatis mutandis in the present case and restore the issues back to file of learned PCIT for deciding afresh with similar directions as were given above.

Summary

Issues involved:
- Jurisdiction of Ld. PCIT in passing the order under section 263 of the Income Tax Act for AY 2011-12 and AY 2012-13.

Detailed Analysis:

Issue 1: Jurisdiction of Ld. PCIT in passing the order under section 263 for AY 2011-12
- The appeals by the assessee were against the order of Ld. PCIT for AY 2011-12 and AY 2012-13.
- Both appeals were clubbed, heard, and disposed of together due to identical issues raised.
- The main contention was the challenge to the jurisdiction of Ld. PCIT in passing the order under section 263 of the Act.
- The legal jurisdictional issue was agreed upon by both the appellant's counsel and the CIT-DR to be restored to the file of Ld. PCIT for fresh decision.
- The ITAT referred to a previous order for AY 2009-10 in the assessee's case where a similar jurisdictional issue was raised and decided by the ITAT to be restored for fresh adjudication.
- Considering the previous decision and to maintain judicial consistency, the ITAT applied the same findings and directed the issue to be restored back to the file of Ld. PCIT for fresh consideration.
- Proper and adequate opportunity of being heard was emphasized for the re-adjudication of the jurisdictional issue by Ld. PCIT.
- All other grounds raised by the assessee were disposed of accordingly after restoring the matter to the file of Ld. PCIT.

Issue 2: Jurisdiction of Ld. PCIT in passing the order under section 263 for AY 2012-13
- The appeals for AY 2012-13 were also considered in light of the decision made for AY 2011-12.
- Following the decision in the previous appeal, the same findings were applied to the present appeal to maintain judicial consistency.
- Consequently, both appeals filed by the assessee for AY 2011-12 and AY 2012-13 were allowed for statistical purposes with no order as to costs.

In conclusion, the ITAT Mumbai directed the jurisdictional issue regarding the order passed by Ld. PCIT under section 263 for AY 2011-12 and AY 2012-13 to be restored back to the file of Ld. PCIT for fresh adjudication, following a similar decision made in a previous case for AY 2009-10. The appeals were allowed for statistical purposes with no costs.