DEPUTY COMMISSIONER OF INCOME TAX, NOIDA V. SAMPARK MANAGEMENT CONSULTANCY LLP, NOIDA

ITA 6158/DEL/2024

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax against Sampark Management Consultancy LLP concerning the assessment year 2017-18. The Revenue challenged the order of the CIT(A), which had favored the assessee by deleting additions made in the assessment order under sections 143(3) and 263 of the Income Tax Act. The CIT(A)'s decision was based on a prior ITAT ruling that quashed the section 263 order, which had set aside the original assessment. The Tribunal's dismissal of the Revenue's appeal was influenced by the quashing of the section 263 order and the confirmation of this decision by the High Court.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669417 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Other Referred Cases: ITA No.1879/Del/2023, ITA No. 78/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARPAT SINGH
• Assessee Lawyers: AMIT GEOL
• Keywords: Set aside; Revision of order
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.6158/Del/2024 (ASSESSMENT YEAR: 2017-18) Deputy Commissioner of Income Tax, Ayakar Bhawan, A-2D, Sector, Noida U.P.-201301. Vs. Sampark Management Consultancy LLP, FH-07, Near Jaypee Hospital, Sector-131, Gautam Buddha Nagar, Uttar Pradesh-201301. PAN:ACSFS9969E (Appellant) (Respondent) O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the Revenue against the order of Learned Commissioner of Income Tax (Appeals), (‘the CIT(A) in short), National Faceless Appeal Centre dated 14.10.2024 in Appeal No. NFAC/2016- 17/10246564 for Assessment Year 2017-18. 2. At the outset, it is seen that this appeal is preferred by the Revenue against the order passed by Ld. CIT(A) wherein the Ld. CIT(A) has deleted the additions made in the order passed u/s 143(3) r.w.s. 263 of the Act dated 30.03.2023. The Ld. CIT(A) has decided the appeal in favour of the assessee on the ground that the order of Ld. PCIT u/s 263 for impugned year was quashed by the Co-ordinate Bench of the ITAT vide its order dated 23.03.2024 in ITA No.1879/Del/2023. Against this order, the Revenue has preferred appeal before the hon’ble Allahabad High Court wherein the hon’ble High Court in ITA No. 78/2024 vide order dated 27.11.2024 dismissed the appeal Assessee by Shri Amit Geol, CA and Shri Pranav Yadav, Adv. Department by Shri Narpat Singh, Sr. DR Date of hearing 25.06.2025 Date of pronouncement 25.06.2025 2 IT No.6158/Del/2024 DCIT vs. Sampark Management Consultancy LLP filed by the Revenue. Therefore, the vary basis of the impugned order has no legs to stand. 3. Before us, the Ld. Sr. DR supports the order of the lower authorities and requested for restoration of the same. 4. On the other hand, the Ld. AR of the assessee submitted that since very basis of the present proceedings that the order passed u/s 263 by Ld. AO has already been quashed by the Co-ordinate Bench of the ITAT in ITA No.1879/Del/2013, therefore, their remained no cause of action as a consequence to order u/s 263 passed by ld. PCIT. Accordingly, he requested the dismissal of the appeal of the Revenue. 5. Heard both the parties. It is seen that in the present case, the assessment was completed u/s 143(3) vide order dated 07.12.2019 accepting the total income declared by the assessee. Thereafter, ld. PCIT, Noida vide order passed u/s 263 dated 27.03.2022 set aside the original assessment order and direct the AO to pass fresh order. The assessee has filed the appeal before the Income Tax Appellate Tribunal against such order u/s 263 of the Act. The coordinate bench of Tribunal vide its order dated 22.03.2024 in ITA No.1879/Del/2023 has quashed the order passed u/s 263 by Ld. PCIT, Noida. In the meantime, during the pendency of appeal before the Tribunal, the AO in compliance to the directions given by Ld. PCIT, had framed the order u/s 263/143(3) dated 30.03.2023 wherein the total income was assessed at 18,41,67,033/- after making additions of Rs.16,57,67,223/- u/s 68 of the Act. In view of this backdrop the Ld. CIT(A) has allowed the appeal of the assessee vide impugned order, against which, the Revenue is in appeal before us. 6. Considering the fact that very basis of the present proceedings that the order u/s 263 dated 27.03.2022 has now been quashed by the Co-ordinate Bench of ITAT and such order stood confirmed by the Hon’ble Jurisdictional High Court by dismissing the Revenue’s appeal in ITA No.78/2024 vide order 3 IT No.6158/Del/2024 DCIT vs. Sampark Management Consultancy LLP dated 27.11.2024, thus, we find no reason to interfere in the order of the Ld. CIT(A) allowing the appeal of the assessee. 7. In view of the above discussion, all the grounds taken by the Revenue are dismissed. 8. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 25.06.2025. Sd/- Sd/- (ANUBHAV SHARMA) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30.06.2025. PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "