CMJ Foundation, Shillong. V. Pr, CIT., Shillong

ITA 125/GTY/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6358 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 28-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA MRIDHA
• Assessee Lawyers: JASPAL SINGH SETHI
• Keywords: Set aside
• Section: 201; 263

Judgement Text

1 ITA NO. 1 25 /GAU/2019 C M J FOUNDATION , AY : 201 0 - 1 1 IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, VIRTUAL HEARING AT KOLKATA ( ) . . , . , ) [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, AM ] I.T.A. NO. 1 25 /GAU/201 9 ASSESSMENT YEAR: 20 1 0 - 1 1 C M J FOUNDATION (PAN: AAATC6117A) VS. ASSISTNT COMMISSIONER OF INCOME TAX - CIRCLE - SHILLONG APP ELLANT RESPONDENT DATE OF HEARING 0 8 .0 9 .20 20 DATE OF PRONOUNCEMENT 10 .0 9 .20 20 FOR THE APP ELLANT SHRI JASPAL SINGH SETHI, AR FOR THE RESPONDENT S HRI JAYANTA MRIDHA, JCIT ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A) , SHILLONG DATED 31 - 0 1 - 201 9 FOR THE ASSESSMENT YEAR 201 0 - 1 1 . 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESS EE SHRI JASPAL SINGH SETHI BROUGHT TO OUR NOTICE THAT THE AO HAS FRAMED REASSESSMENT DATED 25.02.2016 WHILE GIVING EFFECT TO THE REVISION ORDER OF THE LD. CIT, SHILLONG PASSED U/S. 263 OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) DATE D 02.03.2015 AND THE IMPUGNED LD. CIT(A)S ORDER STEMS FROM THE ORDER OF REASSESSMENT OF THE AO DATED 25.02.2016. I T WAS BROUGHT TO OUR NOTICE THAT THE SECTION 263 ORDER OF THE LD. CIT, SHILLONG DATED 02.03.2015 HAS BEEN QUASHED BY THE TRIBUNAL VIDE ORDE R DATED 03.06.2019, THEREFORE, ACCORDING TO LD. COUNSEL, THE ORDER OF THE AO EMANATING FROM THE QUASHED ORDER OF LD. CIT, SHILLONG IS NULL IN THE EYES OF LAW. PER CONTRA, THE LD. CIT, DR RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 3. HAVING HEARD BOT H THE PARTIES AND AFTER PERUSAL OF THE RECORDS, WE NOTE THAT THE LD. CIT, SHILLONG EXERCISING HIS POWER U/S. 263 OF THE ACT DATED 02.03.2015 HAS SET ASIDE THE ORIGINAL ORDER OF THE AO AND MADE CERTAIN DIRECTIONS. THE ASSESSEE HAD CHALLENGED THE ORDER 2 ITA NO. 1 25 /GAU/2019 C M J FOUNDATION , AY : 201 0 - 1 1 OF R EVISION PASSED BY THE LD. CIT, SHILLONG U/S. 263 DATED 02.03.2015 . IT IS NOTED THAT WHILE THE APPEAL AGAINST THE ORDER OF THE LD. CIT, SHILLONG WAS PENDING BEFORE THE TRIBUNAL, THE AO GAVE EFFECT TO THE ORDER OF THE LD. CIT BY PASSING THE REASSESSMENT ORD ER ON 25.02.2016 U/S. 144/263/143(3) OF THE ACT MAKING CERTAIN ADDITIONS. AGGRIEVED BY THE REASSESSMENT ORDER DATED 25.02.2016, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), SHILL O NG WHICH WAS DISMISSED BY THE LD. CIT(A) BY ORDER DATED 31.01.201 9 (IMPUGNED ORDER). DURING THE HEARING IT HAS BEEN BROUGHT TO OUR NOTICE THAT THE TRIBUNAL VIDE ORDER DATED 03.06.2019 HAS QUASHED THE REVISION ORDER PASSED U/S. 263 OF THE ACT BY THE LD. CIT, SHILLONG DATED 02.03.2015, THEREFORE, ALL CONSEQUENTIAL ACTION OF THE AO IS NULL IN THE EYES OF LAW ON THE PRINCIPLE THAT WHEN THE FOUNDATION GOES , THE SUPER STRUCTURE FALLS . THEREFORE, GIVING EFFECT OF THE ORDER OF THE AO (REASSESSMENT ORDER DATED 25.02.2016) IS ITSELF NULL IN THE EYES OF LAW AND, THEREFORE, THE IM PUGNED ORDER OF THE LD. CIT(A) IS ALSO NULL IN THE EYES OF LAW. SO WE ALLOW THE APPEAL OF THE ASSESSEE AND CANCEL THE IMPUGNED ORDER OF LD. CIT(A) . 4 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 10 SEPTEMBE R, 2020 SD/ - SD/ - ( DR. A. L. SAINI ) ( ABY. T. VARKEY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 10 SEPTEMBER , 2020 ** JD. (SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT M/S. C M J FOUNDATION, CMJ UNIVERSITY CAMPUS, JORABAD, RI - BHOI, MEGHALAYA - 793003. 2 RESPONDENT ACIT, CIRCLE SHILLONG 3. 4. 5. CIT(A), SHILLONG CIT - , SHILLONG DR, ITAT, GUWAHATI / TRUE COPY, BY ORDER, SENIOR PVT . SECY.