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TMI Blog2012 (11) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... of the AO is bound to collapse since the super structure erected on the foundation of illegal order cannot stand and accordingly the Ld. CIT(A) has rightly deleted the addition of Rs.61,42,981/- no infirmity in the order of CIT(A), who has rightly quashed the assessment made by the AO and has rightly deleted the addition so made - Thus, all the grounds of appeal of the Revenue for the A.Y. 2001-02 are dismissed – in favour of assessee - I.T.A. Nos.460, 470 & 307(Asr)/2010, 2010 & 2011 & 485(Asr)2010 - - - Dated:- 7-6-2012 - SH. H.S. SIDHU, AND SH. B.P. JAIN, JJ. Appellant by: Sh. Tarsem Lal, DR Respondent by: Sh. K.R. Jain, Adv. ORDER PER BENCH: These appeals of the Revenue arise from different orders of the CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditional demand of market fee, RDF, interest and penalty and had total transaction amounting to Rs.14,11,28,550/-. However, the order of the Secretary, Market Committee, Amritsar has been set aside and remanded back to the Secretary, Market Committee, Amritsar by the Secretary, Punjab Mandi Board, Chandigarh on 11.08.2010 to pass fresh orders on the ground that the assessments have not been made by following the procedure under law and all the powers which were being exercised by the then Secretary, Market Committee, Amritsar had been withdrawn vide office order No.698 dated 8.6.2004.. 3.3. `During the course of appellate proceedings, the A.R. of the assessee filed copy of order dated 8.12.2008 passed by the Secretary an appellate authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r vague. Such an order cannot be sustained in the eyes of law. In view of the above facts, circumstances and provisions of law the impugned assessment order is set aside. However, the assessing authority is at liberty to initiate the fresh assessment proceedings in the case in accordance with the provisions of law and after giving due opportunity to the appellant firm and pass a well reasoned and speaking order within a period of one month from the receipt of this order. 3.4 In view of the above facts circumstances and provisions of law, the impugned assessment order dated nil passed by the Secretary, Market Committee, Amritsar is set aside. The case is remanded back to the Assessing Authority, Market Committee, Amritsar to re-assess t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Secretary, Punjab Mandi Board, Chandigarh, I am of the considered view that there is no justification to uphold the addition made by the AO. Therefore, the addition of Rs.61,42,981/- made by the AO is deleted. 5. In the result, the appeal is allowed. 3. The Ld. DR, Sh. Tarsem Lal, argued that the Secretary being a appellate authority of Punjab Mandi Board, Chandigarh had passed the order to decide the issue afresh and therefore, proceedings u/s 147 of the Act cannot be said to come to an end. The proceedings are still alive and the matter has to be decided by the AO accordingly. 4. On the other hand, the ld. counsel for the assessee, Sh. Padam Bahal, CA argued and invited our attention to the findings of the appellate authority of P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment proceedings were initiated has been set aside, there remains nothing with the Income Tax Department for the issuance of notice u/s 148 of the Act and the matter does not survive and therefore, the order of the AO is bound to collapse since the super structure erected on the foundation of illegal order cannot stand and accordingly the Ld. CIT(A) has rightly deleted the addition of Rs.61,42,981/-. 5. We have heard the rival contentions and perused the facts of the case. The initiation of reassessment proceedings u/s 147 of the Act was the order of Secretary, Market Committee, Amritsar, which was subject matter of appeal before the Secretary, Punjab Board, Chandigarh being the appellate authority. The said appellate authority v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, when the very basis of issuance of notice u/s 148 for initiating of assessment proceedings is no more in existence, nothing survives in the matter. The reliance is placed on the following case laws: i) Somani Pilkingtons Ltd. 257 ITR 614 (P H) ii) Sh. K.S. Bhatia 257 ITR 614 (P H) iii) CIT vs. Vignesh Kumar Jewellers 330 ITR 209 (Mad.) 5.1. In view of our findings hereinabove, and the decision of various courts of law on the similar matter, we find no infirmity in the order of the ld. CIT(A), who has rightly quashed the assessment made by the AO and has rightly deleted the addition so made. We find no infirmity in the order of the ld. CIT(A). Thus, all the grounds of appeal of the Revenue in ITA No.460(Asr)/2010 for the A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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