INCOME TAX OFFICER, KULLU V. SPAN MOTELS PRIVATE LIMITED, KULLU

ITA 372/CHANDI/2025

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A)/NFAC, Delhi, which arose from an assessment framed under section 143(3) read with section 263 of the Income-tax Act, 1961 for the assessment year 2014-15. The foundation of the assessment was an order passed under section 263 by the Pr. CIT, Shimla, which was later quashed by the Chandigarh Bench of the Tribunal. The Revenue's appeal became infructuous following the quashing of the section 263 order. The Departmental Representative admitted the infructuous nature of the appeal but mentioned the possibility of filing an appeal before the Hon'ble High Court. The assessee's representative argued that the quashing of the revisional order under section 263 nullified the consequential assessment order, making the Revenue's appeal unsustainable.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775203 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 13-03-2025
• Other Referred Cases: Chandigarh Bench of the Tribunal vide order dated 08.01.2025 in ITA No. 729/Chd/2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TARUNDEEP KAUR; VIRTUAL MODE
• Assessee Lawyers: M.R. SAHU; VIRTUAL MODE
• Section: 143(3); 263

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: VIRTUAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 372/Chd/2025 िनधाŊरण वषŊ / Assessment Year : 2014-15 The ITO Kullu बनाम Span Motels Private Limited Vill. Pirdi, PO: Mohali, Tehsil & Dist: Kullu(H.P) ˕ायी लेखा सं./PAN NO: AAHCS5745C अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri M.R. Sahu, C.A. (Virtual Mode) राजˢ की ओर से/ Revenue by : Smt. Tarundeep Kaur, CIT, DR (Virtual Mode) सुनवाई की तारीख/Date of Hearing : 02/09/2025 उदघोषणा की तारीख/Date of Pronouncement : 03/09/2025 आदेश/Order PER LALIET KUMAR, J.M: This appeal has been preferred by the Revenue against the order of the Ld. CIT(A)/NFAC, Delhi dated 15.01.2025, arising out of assessment framed under section 143(3) read with section 263 of the Income-tax Act, 1961 for assessment year 2014-15. 2. At the time of hearing, the Ld. Departmental Representative fairly submitted that the foundation of the present assessment rests upon the order passed under section 263 of the Act by the Pr. CIT, Shimla, dated 13.03.2019. It was, however, brought to our notice that the Chandigarh Bench of the Tribunal vide order dated 08.01.2025 in ITA No. 729/Chd/2019 has already quashed the very order passed under section 263. Consequently, the Ld. DR admitted that in view of the annulment of the section 263 order, the present appeal becomes infructuous. At the same time, the Ld. DR pleaded that the Revenue is exploring the possibility of filing an appeal before the Hon’ble High Court and, therefore, the matter may be adjourned. 3. On the other hand, AR appeared on behalf of the assessee, submitted that once the revisional order passed under section 263 stands quashed by Printed from counselvise.com 2 the Tribunal, the consequential assessment order passed under section 143(3) read with section 263 has no legs to stand. In such circumstances, the appeal of the Revenue challenging the order of the CIT(A) arising out of such assessment cannot be sustained. 4. We have heard the rival contention of the parties and perused the material available on the record. In view of the settled legal position that once the foundation is removed, the superstructure falls, the present appeal filed by the Revenue is dismissed as infructuous. 4.1 However, it is clarified that in case the Hon’ble High Court, in future, revives or upholds the order passed under section 263, it shall be open for the Revenue to move an appropriate application before this Tribunal for revival of the present appeal, and such liberty is expressly granted. 4.2 The appeal filed by the Revenue is dismissed as infructuous, with liberty to seek revival in the eventuality of a favourable order of the Hon’ble High Court. 5. In the result, appeal of the Revenue is dismissed. Order pronounced in the open Court on 03/09/2025 Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "