DCIT, CIR-3(3)(1), MUMBAI V. VALECHA LM TOLL PVT LTD, MUMBAI

ITA 1042/MUM/2023

AI Insights

The case involves the Revenue's appeal against the order of the Ld. CIT(A) which allowed the appeal of Valecha LM Toll Private Limited, the respondent. The core issue was the validity of the assessment order passed under Section 143(3) read with Section 263 of the Income Tax Act, 1961, which was initially based on a revision order by the Ld. PCIT. However, this revision order was later quashed by the ITAT in a separate appeal. The Revenue challenged the CIT(A)'s decision, arguing that the CIT(A) was not justified in allowing the assessee's appeal based on the quashed revision order. The tribunal found that since the revision order was quashed, the assessment order, which was a consequence of the revision, also ceased to be valid.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123509 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 21-06-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 30-03-2023
• Other Referred Cases: ITA No. 2848/Mum/2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “F”, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA NO. 1042/MUM/2023 : A.Y : 2013-14 DCIT, Circle – 3(3)(1), Mumbai. (Appellant) Vs. Valecha LM Toll Private Limited 4 th floor, Plot No. B6, Valecha Chambers, New Link Road, Andheri (W), Mumbai 400 053. PAN : AADCV2787M (Respondent) Appellant by : None Respondent by : Shri Ankush Kapoor Date of Hearing : 22/06/2023 Date of Pronouncement : 26/06/2023 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER : The Revenue has filed this appeal challenging the order dated 31.01.2023 passed by learned Commissioner of Income Tax (Appeals) (NFAC), Delhi (in short ‘Ld. CIT(A)’) and it relates to Assessment Year 2013- 14. The contention of the Revenue is that Ld. CIT(A) was not justified in allowing the appeal of assessee on the ground that the order passed under Section 263 of the Income Tax Act, 1961 (in short ‘the Act’) has since been quashed by the ITAT. The reason given by the revenue for the above said 2 ITA No. 1042/Mum/2023 Valecha LM Toll Pvt. Ltd. contention is that it has filed appeal before the Hon’ble Bombay High Court challenging the order so passed by the Tribunal. 2. None appeared on behalf of the assessee, even though the notice of hearing was sent by Registered Post. Hence, we proceed to dispose of the appeal ex parte, without presence of the assessee. 3. We heard the ld. DR and perused the record. The Assessing Officer has passed the impugned order under Section 143(3) read with Section 263 of the Act in order to give effect to the revision order passed by the Ld. PCIT on 27.03.2018. In the meantime, the assessee challenged the revision order passed by Ld PCIT by filing appeal before ITAT and the Tribunal, vide its order dated 23.04.2019 passed in ITA No. 2848/Mum/2018, has quashed the revision order passed by the Ld. PCIT under Section 263 of the Act. When this fact was brought to the notice of the Ld. CIT(A), he held that the impugned assessment order passed under Section 143(3) read with Section 263 of the Act would not survive. Accordingly, he allowed the appeal of assessee. Revenue is aggrieved by the order so passed by the Ld. CIT(A). 4. There is no dispute that the impugned assessment order has been passed in order to give effect to the revision order passed by Ld PCIT. When the revision order stands quashed, then the impugned assessment order would not have any independent legs to stand on its own. Accordingly, We are of the view that the order so passed by the Ld. CIT(A) does not call for any interference. Accordingly, we confirm the order passed by the Ld. CIT(A). 3 ITA No. 1042/Mum/2023 Valecha LM Toll Pvt. Ltd. 5. In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 26 th June, 2023. Sd/- Sd/- (RAHUL CHAUDHARY) JUDICIAL MEMBER (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai, Date : 26 th June, 2023 *SSL* Copy to : 1) The Applicant 2) The Respondent 3) The CIT concerned 4) The D.R, “F” Bench, Mumbai 5) Guard file By Order Dy./Asstt. Registrar I.T.A.T, Mumbai