2023 (8) TMI 594 - HC - Income Tax

Revision u/s 263 - Tribunal had set aside the order passed by the CIT u/s 263 - HELD THAT - Adjudication of the present appeal itself is rendered academic inasmuch as the effect of the order passed by the CIT exercising powers under Section 263 of the I.T. Act had percolated in an assessment order being passed by the Assessing Officer under Section 143(3) read with Section 263 of the I.T. Act, being order dated 30th March 2011. As the proceedings under the said order itself had ended in the Assessee s appeal being allowed and the challenge to the same being withdrawn by the Revenue, adjudication of the present proceedings, which arise from the proceedings under Section 263, is rendered completely academic and inconsequential. Revenue, will not dispute as to what has ultimately happened in the Revenue s appeal arising from the orders passed under Section 143(3). He, therefore, would not dispute on the contention as urged on behalf of the Assessee that the proceedings of the present appeal are rendered academic. The appeal is, accordingly, disposed of as infructuous, in view of the antecedents as noted by us.

Summary

Issues Involved:
The appeal filed by the Revenue under Section 260A of the Income Tax Act against the Tribunal's decision quashing the order passed under Section 263 of the I.T. Act in favor of the Assessee for the Assessment Year 2006-2007.

Analysis of the Judgment:

1. The Revenue appealed against the Tribunal's decision to quash the order passed under Section 263 of the I.T. Act in favor of the Assessee for the Assessment Year 2006-2007. The Tribunal set aside the Commissioner of Income Tax's order, and subsequently, the Assessee's appeal was allowed. The Revenue challenged this decision but later withdrew the appeal due to the tax effect being below the threshold limit specified by the CBDT Circular No. 17 of 2019.

2. The Tribunal's decision on the Assessee's appeal in ITA No. 2708/Mum/2014, related to the assessment year 2006-2007, was crucial in the present appeal. The Tribunal's order led to the Assessee's appeal being allowed, and the Revenue withdrawing its challenge due to the tax effect being below the specified limit.

3. The Assessee's appeal was allowed based on the Tribunal's decision, which set aside the Commissioner of Income Tax's order under Section 263 of the I.T. Act. The subsequent assessment order passed under Section 143(3) read with Section 263 of the I.T. Act was impacted by the Tribunal's decision in the Assessee's favor.

4. The adjudication of the present appeal was deemed academic as the effect of the Commissioner's order under Section 263 had already been reflected in the assessment order passed by the Assessing Officer. The proceedings under the said order concluded with the Assessee's appeal being allowed and the Revenue withdrawing its challenge.

5. The Appellant Revenue did not contest the Assessee's assertion that the present appeal had become academic due to the events following the Tribunal's decision. Consequently, the appeal was disposed of as infructuous based on the circumstances presented.

6. The appeal was ultimately disposed of as infructuous, and no costs were awarded in light of the developments and antecedents outlined during the proceedings.