CITRON INFRAPROJECTS LIMITED ,MUMBAI V. PCIT CENTRAL -4, MUMBAI

ITA 2654/MUM/2025

AI Insights

The case involves Citron Infraprojects Ltd., which appealed against the revision order passed by the Principal Commissioner of Income-tax (Central)-4. The revision was based on an earlier assessment order under Section 153A read with Section 144 of the Income-tax Act, 1961, which had been set aside by the ITAT. The PCIT's subsequent revision under Section 263 was challenged on the grounds that the original assessment order had been annulled, rendering the revisionary proceedings infructuous. The Tribunal agreed with the assessee, leading to the setting aside of the PCIT's order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652655 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Other Referred Cases: ITA No. 1518/Mum/2023, ITA No. 1569/Mum/2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.A. DHYANI
• Assessee Lawyers: MADHUR AGRAWAL
• Keywords: Set aside; Opportunity of being heard; Search and seizure; Revision of order
• Section: 143(3); 263; 132; 153A; 260A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAJ KUMAR CHAUHAN (JUDICIAL MEMBER) ITA No. 2654/MUM/2025 Assessment Year: 2014-15 Citron Infraprojects Ltd., 97, 9th floor, Maker Tower F, Cuffe Parade, Mumbai-400 005. Vs. Pr. CIT (Central)-4, Room No.663, 6th floor, Aayakar Bhavan, Maharishi Karve Road, Mumbai-400020. PAN NO. AADCC 3735 C Appellant Respondent Assessee by : Mr. Madhur Agrawal Revenue by : Mr. R.A. Dhyani, CIT-DR Date of Hearing : 09/06/2025 Date of pronouncement : 17/06/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against the revision order dated 25.03.2025 passed by the Ld. Principal Commissioner of Income-tax (Central), Mumbai – 4 [in short ‘the Ld. PCIT’], wherein the assessment order passed u/s 153A r.w.s. 144 of the Income-tax Act, 1961 (in short ‘the Act’) has been set aside. The grounds raised by the assessee are reproduced as under: Citron Infraprojects Ltd 2 ITA No. 2654/MUM/2025 1. The Hon'ble Principal Commissioner of Income Tax (Central)-4 erred in passing an Order u/s 263 of the Income Tax Act (the Act) seeking to revise the Assessment Order u/s 144 r.w.s 153A which was already quashed by the Hon'ble ITAT vide Order dated 30.04.2024 and hence, the impugned order u/s 263 is also liable to be quashed. 2. Without prejudice to Ground No. 1, the Hon'ble Principal Commissioner of Income Tax (Central)-4 erred in holding that the Assessment Order passed u/s. 144 r.w.s. 153A of the Act is erroneous so far as prejudicial to the interests of the revenue. 3. Without prejudice to Ground No. 1, the Hon'ble Principal Commissioner of Income Tax (Central)-4 erred in directing the Ld. A.O. to pass fresh Assessment Order u/s. 144 r.w.s. 153A of the Act with respect to an issue which is not based on any incriminating material found during the course of the search. 2. Briefly stated, the facts of the case are as follows: The assessee originally filed its return of income for the relevant assessment year on 30.09.2014, which was subsequently revised on 09.07.2015, declaring a total income of ₹1,18,030/-. The return was selected for scrutiny, and assessment was completed under Section 143(3) of the Act, on 30.12.2016. Subsequently, pursuant to a search and seizure operation conducted under Section 132 of the Act at the premises of the assessee, an assessment under Section 153A read with Section 144 of the Act was framed on 27.02.2021. Thereafter, the learned PCIT, having perused the records, initiated revisionary proceedings and passed an order under Section 263 of the Act on 23.03.2023. However, the said order was set aside by the Income- tax Appellate Tribunal (ITAT) in ITA No. 1518/Mum/2023 , with a direction to the PCIT to decide the matter afresh after affording the assessee a reasonable opportunity of being heard. Pursuant thereto, Citron Infraprojects Ltd 3 ITA No. 2654/MUM/2025 the impugned order was passed by the learned PCIT, wherein the assessment order dated 27.02.2021 was set aside. 3. Before us, the assessee filed a Paper Book containing pages 1 to 490. 4. We have heard the rival submissions advanced by the learned counsel for the parties and have carefully perused the material available on record. It has been brought to our notice by the learned counsel appearing on behalf of the assessee that the impugned assessment order, which formed the very foundation of the revisionary proceedings under Section 263 of the Act, has been annulled by the Income-tax Appellate Tribunal in ITA No. 1569/Mum/2022, pertaining to the assessment year 2014–15, vide order dated 30.04.2024. It was submitted that in light of such annulment, the revision proceedings initiated by the learned Principal Commissioner of Income-tax (PCIT) have become infructuous and deserve to be quashed. Our attention was also drawn to paragraph 3.5 of the impugned order passed under Section 263 of the Act, which records the assessee’s contention as under: “3.5 Further in the reply, the assessee contended that the assessment order u/s 144 r.w.s. 143(3) against which, the revisionary proceedings have originated, has already been quashed by the Hon'ble ITAT vide the order dated 30.04.2024. Therefore, the present revision proceedings do not survive. Citron Infraprojects Ltd 4 ITA No. 2654/MUM/2025 Here, it is relevant to mention that the decision of the Hon’ble ITAT has not been accepted by the Department and further appeal under Section 260A has been filed before the Hon’ble High Court, which is pending.” 4.1 It is evident from the impugned order that the learned PCIT proceeded with the revisionary order under Section 263 solely on the ground that the Revenue has preferred an appeal under Section 260A of the Act before the Hon’ble High Court. However, it is an admitted position that the order of the Tribunal annulling the assessment has neither been stayed nor rendered inoperative by any competent court of law. In such circumstances, the order of the Tribunal holds the field and binds the parties unless and until reversed or stayed by a superior forum. Consequently, the assessment order dated 27.02.2021 having been annulled, the foundation for exercise of jurisdiction under Section 263 ceases to exist. Therefore, the impugned revisionary order passed by the learned PCIT cannot be sustained and is accordingly set aside. Ground No. 1 of the assessee’s appeal is thus allowed. 5. Insofar as grounds Nos. 2 and 3 are concerned, we find that in view of our findings above, the issues raised therein are rendered academic and do not require adjudication at this stage. Accordingly, those grounds are left open to be decided, if so warranted, in any appropriate future proceedings. Citron Infraprojects Ltd 5 ITA No. 2654/MUM/2025 6. The appeal of the assessee is accordingly allowed. Order pronounced in the open Court on 17/06/2025. Sd/- Sd/- (RAJ KUMAR CHAUHAN) (OM PRAKASH KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 17/06/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai "