DCIT,CIRCLE-1, BURDWAN, BURDWAN V. BARDHAMAN DHARMARAJ PAPER MILL PVT LTD, BURDWAN

ITA 2654/KOL/2024

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which had allowed the appeal of Bardhaman Dharmaraj Paper Mills Private Limited for the assessment year 2014-2015. The core issue was the validity of the assessment order that was passed in consequence of an earlier order under section 263 of the Income Tax Act, which had been quashed. The revenue contended that the CIT(A) erred in allowing the appeal without deciding the issue on merits, despite the fact that an SLP against the quashing of the section 263 order was pending before the Supreme Court. The Tribunal, however, found that the CIT(A)'s decision was correct as the foundational order under section 263 no longer existed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314047 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Other Referred Cases: ITA No.160/Kol/2021, ITAT/207/2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P.N. BARNWAL
• Keywords: Revision of order
• Section: 143(3); 263

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.2654/KOL/2024 (निर्धारण वर्ा / Assessment Year : 2014-2015) DCIT, Circle-1, Burdwan Vs Bardhaman Dharmaraj Paper Mills Private Limited, Konerpara Kalanabagram, Memari, West Bengal PAN No. :AAECB 0141 J (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) रधजस्व की ओर से /Revenue by : Shri P.N.Barnwal, CIT-DR निर्धाररती की ओर से /Assessee by : None सुनवाई की तारीख / Date of Hearing : 05/05/2025 घोषणा की तारीख/Date of Pronouncement : 05/05/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the revenue against the order dated 30.05.2024, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, passed in DIN & Order No.ITBA/NFAC/S/250/2024- 25/1065254140(1), for the assessment year 2014-2015. 2. Shri P.N.Barwal, CIT-DR appeared on behalf of the revenue. None appeared on behalf of the assessee. 3. At the outset, on perusal of the appeal record, we found that the appeal of the revenue is filed belatedly by 148 days. In this regard, the revenue has filed an application dated 26.12.2024 stating sufficient reasons for condonation of delay, which in our opinion, are plausible. Accordingly, ITA No.2654/KOL/2024 2 the delay of 148 days in filing the appeal by the revenue is condoned and the appeal is heard on merits. 4. It was submitted by the ld CIT-DR that the ld. CIT(A) has allowed the appeal of the assessee holding that the order u/s.263 of the Act, which was a foundation for the assessment order passed in the impugned appeal, has been quashed by the coordinate bench of the Tribunal. Consequently, the ld. CIT(A) had allowed the appeal of the assessee. It was the submission that the order of the coordinate bench of the Tribunal quashing the order u/s.263 of the Act, was under challenge before the Hon’ble Supreme Court, as evidenced by ground No.1 of revenue’s appeal which reads as follows:- 1. Whether. on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC is justified in allowing the appeal of the assessee on the ground that 'once the order passed u/s. 263 of the Act is quashed, the consequential order passed in pursuance of order u/s 263 of the Act cannot be survived and the base order [i.e., 143(3) r.w.s 147 of the Act] which was subjected to revision gets again the life' in spite of the fact that SLP before the Hon'ble Supreme Court is being filed by the Revenue against the Order of Hon'ble High Court confirming the Order ITAT quashing the Order u/s 263 of the Act. 5. It was the submission that the ld. CIT(A) ought to have decided the issue on merits. 6. We have considered the submissions of the ld. CIT-DR. A perusal of the grounds filed by the revenue clearly shows that even the Hon’ble Jurisdictional High Court has upheld the order of the coordinate bench of the Tribunal quashing the order u/s.263 of the Act. The grounds of appeal specifically claim that an SLP is pending before the Hon’ble Supreme Court. It is a fact that the order u/s.263 of the Act is no more existing as the coordinate bench of the Tribunal has already quashed the same passed in ITA No.2654/KOL/2024 3 ITA No.160/Kol/2021, vide order dated 10.10.2022 and the same has been upheld by the Hon’ble Jurisdictional High Court in ITAT/207/2023 (IA No.GA/2/2023), vide Judgement dated 03.01.2024. In view of the above, we do not find any error in the order of the ld. CIT(A) in setting aside the order which has been passed in consequence of the order passed u/s.263 of the Act. Accordingly, the appeal of the revenue stands dismissed. 7. In the result, appeal of the revenue is dismissed. Order dictated and pronounced in the open court on 05/05/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 05/05/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "