DEPUTY COMMISSIONER OF INCOME TAX, GURGAON V. AGILUS PATHLABS PRIVATE LIMITED (EARILER KNOWN AS SRL DIAGNOSTICS PVT LTD, DELHI

ITA 729/DEL/2025

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals), which had allowed the appeal of Agilus Pathlabs P. Ltd. The core issue arose from an assessment order passed under sections 143(3) read with section 263 of the Income Tax Act, 1961. The Principal Commissioner of Income Tax had earlier passed an order under section 263, which was challenged and set aside by the Tribunal. Consequently, the CIT(A) allowed the assessee's appeal, leading to the Revenue's current appeal. The Tribunal upheld the CIT(A)'s decision, noting that the subsequent proceedings, including the assessment order, were invalidated due to the setting aside of the foundational section 263 order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711852 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2013-2014
• Other Referred Cases: ITA No. 1528/Mum/2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: S KARANJOT SINGH KHURANA; DEVASHISH JAIN
• Keywords: Set aside
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी अवधेश क ुमार िमŵा, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER आअसं.729/िदʟी/2025(िन.व. 2013-14) ITA No. 729/DEL/2025 (A.Y.2013-14) Deputy Commissioner of Income Tax, HSIIDC Building Office, Circle-1, 5th floor, Udyog Vihar, Phase-V, Haryana 122016 ...... अपीलाथᱮ/Appellant बनाम Vs. Agilus Pathlabs P. Ltd., (Earlier Known as SPL Diagnostics P. Ltd.) 74, GF Paschimi Marg, Opp. C Block Market, Vasant Vihar-1, South Delhi 110057 PAN: AAACT-9117-E ..... ᮧितवादी/Respondent Assessee by : S/Shri Karanjot Singh Khurana, Devashish Jain, Dhananjai Dhokalia & S. Sriram, Advocates Department by : Shri Om Prakash, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 22.07.2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 22.07.2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)] dated 27.05.2024, for Assessment Year 2013-14. 2. Shri Karanjot Singh Khurana, appearing on behalf of the assessee at the outset submitted that the present appeal arises from assessment order dated 31.10.2018 passed u/s. 143(3) r.w.s. 263 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). The order passed by the Principal Commissioner of Printed from counselvise.com 2 ITA No.729/Del/2025 (AY 2013-14) Income Tax (PCIT) u/s.263 of the Act dated 20.02.2018 was challenged by the assessee before the Tribunal in ITA No. 1528/Mum/2018. The Tribunal vide order dated 08.01.2021 set aside the order passed by the PCIT u/s. 263 of the Act. Once the order u/s. 263 of the Act has been set aside by the Tribunal, the subsequent proceedings arising there from are vitiated. The CIT(A) allowed appeal of the assessee on this very reason. 3. Per contra, Shri Om Prakash representing the department prayer for time to verify the facts in the case. 4. Both sides heard, orders of the authorities below examined. The present appeal by the Revenue emanates from the assessment order passed in u/s. 143(3) r.w.s. 263 of the Act. The order passed by the PCIT in assessee’s case u/s. 263 of the Act was subject matter of challenge before the Tribunal in ITA No.1528/Mum/2018 (supra). The Tribunal vide order dated 08.01.2021 quashed the order of PCIT passed u/s. 263 of the Act. Once the foundation of assessment order dated 31.10.2018 is eroded, the consequential proceedings arising from the said order are nonest. The CIT(A) vide impugned order has rightly allowed appeal of assessee for this very reason. We see no infirmity in the impugned order, hence, the same is upheld. 6. In the result, appeal of the Revenue is dismissed being devoid of any merit. Order pronounced in the open court on Tuesday the 22nd day of July, 2025. Sd/- Sd/- (AVDHESH KUMAR MISHRA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 22/07/2025 Printed from counselvise.com 3 ITA No.729/Del/2025 (AY 2013-14) NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "