INCOME TAX OFFICER, WARD-1(1), RAIPUR, RAIPUR V. PRACHI AGRICULTURE & PROPERTIES (P) LTD, URKURA, RAIPUR

ITA 564/RPR/2025

AI Insights

The case involves an appeal by the Income Tax Officer, Raipur against the decision of the Commissioner of Income Tax (Appeals), which had deleted an addition of Rs. 3,89,68,255 made by the Assessing Officer. This addition was initially treated as unexplained cash credit from an unsecured loan. The ITAT, Raipur had earlier quashed the revisionary order under section 263, which led to the deletion of this addition. The revenue's appeal to the High Court was dismissed due to the case falling below the monetary limit for tax disputes. Consequently, the ITAT's decision became final, leading to the dismissal of the revenue's current appeal as it was based on a now non-existent legal foundation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786910 (ITAT-RAIPUR)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 26-09-2025
• Other Referred Cases: ITA No. 30/RPR/2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI
• Keywords: Unexplained cash credit; Revision of order
• Section: 143(3)

Judgement Text

"pआयकर अपीलीय अिधकरण, रायपुर Ɋायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR Įी पाथ[ सारथी चौधरȣ, Ɋाियक सद˟ एवं ŵी अŜण खोड़िपया, लेखा सद˟ क े समƗ । BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं. / ITA No: 564/RPR/2025 (िनधाŊरण वषŊ Assessment Year: 2016-17) Income Tax Officer, Ward-1(1), Aayakar Bhawan, Civil Lines, Raipur-492001, C.G. v s Prachi Agriculture & Properties (P) Ltd., P-48, Industrial Area, Urkura, Raipur-492001, C.G. PAN: AABCP3701H (अपीलाथŎ/Appellant) . . (ŮȑथŎ / Respondent) िनधाŊįरती की ओर से / Assessee by : None (Petition filed) राजˢ की ओर से / Revenue by : Shri Ram Tiwari, CIT-DR सुनवाई की तारीख / Date of Hearing : 17.11.2025 घोषणा की तारीख / Date of Pronouncement : 17.11.2025 आदेश / O R D E R Per Arun Khodpia, AM: The captioned appeal is instituted at instance of revenue against the order of Commissioner of Income Tax (Appeal), NFAC, Delhi, [in short “Ld. CIT(A)”], dated 10.07.2025 for the Assessment Year 2016-17, passed under section 250 of the Income Tax Act, 1961 (in short “the Act”), which in turn arises from the order passed by Assessing Officers, National Faceless Assessment Centre, Delhi (in short “Ld. AO”), u/s 143(3) r.w.s. 263 r.w.s. 144B of the Act, dated 31.03.2022. Printed from counselvise.com 2 ITA No.564/RPR/2025 ITO, Ward-1(1), Raipur Vs. Prachi Agriculture & Proeprties (P) Ltd. 2. The grounds of appeal raised by the revenue reads as under: 1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 3,89,68,255/- made by the Assessing Officer on account of unexplained cash credit. 2. Any other ground which may be adduced at the time of hearing. 3. The brief facts of the case are that the assessee filed its Return of Income for the year under consideration on 16.03.2017, declaring total income at Rs.7,320/-. However, after scrutiny assessment an order u/s 143(3) was passed by 21.12.2018, assessing the total income at Rs. 43,60,750/-. Subsequently, the assessment of the assessee has been picked up for revisionary action by the Ld. Principle Commissioner of Income Tax-1, Raipur and an order u/s 263 came to be passed on 26.03.2021, with direction to pass fresh assessment order after verifying unsecured loan of Rs.3,89,68,255/- taken by the assessee company from M/s Pratibha Endeavor Pvt. Ltd. In consequence, an order u/s 143 r.w.s. 263 was passed by Ld. AO making a further addition of Rs. 3,89,68,255/-, treating the unsecured loan received from M/s Pratibha Endeavor Pvt. Ltd. as unexplained cash credit in the hands of assessee. 4. To challenge the aforesaid addition, the assessee preferred an appeal before the Ld. CIT(A), wherein the entire quantum addition has been deleted Printed from counselvise.com 3 ITA No.564/RPR/2025 ITO, Ward-1(1), Raipur Vs. Prachi Agriculture & Proeprties (P) Ltd. by the Ld. CIT(A) following the directions of Jurisdictional ITAT, Bench of Raipur in ITA No. 30/RPR/2021 vide order dated , wherein the revisionary order u/s 263 dated 23.03.2021 has been quashed by the ITAT, Raipur. 5. Since the relief was granted by the Ld. CIT(A) following the order of ITAT, Raipur, now the revenue, being aggrieved has filed the present appeal before us. 6. At the outset, when the matter was called for hearing, it is noticed that the assessee’s counsel has filed an application for adjournment, stating therein the brief facts of the case, which reads as under: Printed from counselvise.com 4 ITA No.564/RPR/2025 ITO, Ward-1(1), Raipur Vs. Prachi Agriculture & Proeprties (P) Ltd. Printed from counselvise.com 5 ITA No.564/RPR/2025 ITO, Ward-1(1), Raipur Vs. Prachi Agriculture & Proeprties (P) Ltd. 7. As emanating from the aforesaid submissions by the assessee, the appeal of assessee has been accepted and allowed by ITAT on 21.04.2022 by quashing the order u/s 263, whereas the consequential order u/s 143(3)/263 was passed by Ld. AO on 30.03.2022 (i.e., prior to the order of ITAT). It is also pertinent to note that the order of ITAT dtd. 21.04.2022 in ITA No. 30/RPR/2021 was further challenged by the revenue before the Hon’ble High Court of Chhattisgarh, however, due to low monetary tax limit, being the case was below the tax limit of Rs. 2 Crores, the appeal of assessee has been dismissed by the Hon’ble Jurisdictional High Court of Chhattisgarh on 26.03.2025. Accordingly, the matter reached at finality and order u/s 263 remain quashed and nullified, as held by the coordinate bench of ITAT, Raipur. We, thus, concur with the decision of Ld. CIT(A) in allowing the appeal of assessee following the order of ITAT, Raipur quashing the revisionary order passed u/s 263, therefore, there was no reason before us to interfere with the same. 8. Since the basis of assessment u/s 143 r.w.s. 263 was the revisionary order u/s 263, which has been quashed by the Tribunal in ITA No. 30/RPR/2021vide order dated 21.04.2022, therefore, the consequential order passed by the Ld. AO also rendered as null and void and would fall being left with no foundation to stand on, consequently, has no standing in Printed from counselvise.com 6 ITA No.564/RPR/2025 ITO, Ward-1(1), Raipur Vs. Prachi Agriculture & Proeprties (P) Ltd. the eyes of law. Under such circumstances, the appeal of revenue in present matter against a null and void assessment order become infructuous and, therefore, the same cannot qualify to be maintainable. 9. In terms of aforesaid observation, we are of the considered opinion that the appeal filed by the revenue would construe to be infructuous, not maintainable and is liable to be rejected. 10. In result, the appeal of revenue in ITA No. 564/RPR/2025 stands dismissed, in terms of our aforesaid observation. Order pronounced in the open court on 17/11/2025. Sd/- (PARTHA SARATHI CHAUDHURY) Sd/- (ARUN KHODPIA) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER रायपुर / Raipur; िदनांक Dated 17/11/2025 Vaibhav Shrivastav, Stenographer आदेशकी Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/ The Appellant- 2. ŮȑथŎ/ The Respondent- 3. The Pr. CIT, Raipur (C.G.) 4. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur Printed from counselvise.com 7 ITA No.564/RPR/2025 ITO, Ward-1(1), Raipur Vs. Prachi Agriculture & Proeprties (P) Ltd. आदेशानुसार/ BY ORDER, (Senior Private Secretary) आयकर अपीलीय अिधकरण, रायपुर / ITAT, Raipur 5. गाडŊ फाईल / Guard file. // सȑािपत Ůित True copy // Printed from counselvise.com "