ACIT CENTRAL CIRCLE 1(3), AHMEDABAD V. BAGHBAN PACKAGING LLP, AHMEDABAD

ITA 901/AHD/2025

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which set aside the AO's assessment order for the AY 2017-18. The AO's original assessment was revised under section 263 by the Pr.Commissioner of Income Tax, leading to a fresh assessment with additions. However, the Tribunal quashed the revision order, rendering the subsequent assessment order inoperative. The Revenue's appeal to the Tribunal contested the CIT(A)'s decision to invalidate the AO's order, which was based on the quashed revision order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712847 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: ASEEM L. THAKKAR
• Keywords: Set aside

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“ ,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C ” BENCH, AHMEDABAD \u0016ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0016ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.901/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2017-18 The ACIT Central Circle-1(3) Ahmedabad 380 014 बनाम/ v/s. Baghban Packaging LLP Urmin House, Ground Floor Sindhu bhavan Road B/s. HOF Living Off. SG Highway, Bodakdev Ahmedabad – 380 059 \u0013थायी लेखा सं./PAN: AAQFB 1688 P (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Aseem L. Thakkar, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 10/07/2025 घोषणा की तारीख /Date of Pronouncement: 29/07/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the Revenue against the order of the Commissioner of Income Tax (Appeals)-11, Ahmedabad [hereinafter referred to as ‘the CIT(A)] dated 19/02/2025 setting aside the order passed by the Assessing Officer (AO) u/s.143(3) r.w.s.263 of the Income Tax Act, 1961 dated 27/03/2023, for the Assessment Year (AY) 2017-2018. 2. In this case, the earlier assessment order passed by the AO u/s.143(3) of the Act was set aside by the Pr.Commissioner of Income Tax invoking his Printed from counselvise.com ITA No. 901/Ahd/2025 ACIT vs. Baghban Packaging LLP Asst.Year : 2017-18 2 revision jurisdiction u/s.263 of the Act and directed the AO to pass a fresh assessment order as per the directions given by him. Consequent to the above directions, the Ld.AO passed a fresh assessment order u/s.143(3) r.w.s.263 of the Act dated 27/03/2023 making certain additions. In the meantime, the assessee preferred an appeal before this Tribunal against the revision order passed by the Ld.CIT/PCIT u/s.263 of the Act. The Tribunal vide order dated 26/07/2023 passed in ITA No.161/Ahd/2022 quashed the order passed by the Commissioner u/s.263 of the Act. 3. The Ld.CIT(A) vide impugned order dated 19/02/2025, in the appeal of the assessee against the assessment order dated 27/03/2023 passed u/s.143(3) r.w.s.263 of the Act, held that since the order u/s.263 has already been quashed by the Tribunal, therefore the impugned assessment order u/s.143(3) r.w.s.263 of the Act did not have any legs to stand and, accordingly, held the same as inoperative and deleted the additions made by the AO vide said order dated 27/03/2023. 4. Being aggrieved by the said order of the Ld.CIT(A), the Revenue has come in appeal pleading that the Revenue has already preferred appeal before the Hon’ble Jurisdictional High Court of Gujarat against the order of the Tribunal dated 26/07/2023 and that in the facts and circumstances, the Ld.CIT(A) was not justified in invalidating the order passed by the AO dated 27/03/2023 u/s.143(3) r.w.s.263 of the Act. 5. We have heard the rival contentions and gone through the record. Admittedly, the revision order passed by the CIT/PCIT u/s.263 of the Act has been quashed by the Tribunal vide order dated 26/07/2023. Therefore, Printed from counselvise.com ITA No. 901/Ahd/2025 ACIT vs. Baghban Packaging LLP Asst.Year : 2017-18 3 the consequential order passed by the AO u/s.143(3) r.w.s.263 of the Act has no legs to stand and the same has become infructuous/inoperative. Therefore, there is no infirmity in the order of the CIT(A) and the same is upheld. However, it is directed that, in case, the appeal of the Revenue against the order of the Tribunal dated 26/07/203 is allowed and the order of the Tribunal is set aside by the Hon’ble High Court of Gujarat, then in that event, the Revenue will be at liberty to move an application before this Tribunal for revival of this appeal. 4. With the above observations, appeal of the Revenue is hereby dismissed. Order pronounced in the Open Court on 29 /07/2025. Sd/- Sd/- (Makarand V. Mahadeokar) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 29/07/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)/Pr.CIT 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad Printed from counselvise.com "