Mahesh Mehta, Delhi V. ACIT, New Delhi

ITA 3617/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9066 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 05-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARIMITA BISWAS
• Assessee Lawyers: SURESH K GUPTA
• Section: 201; 69; 263

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E : NEW DELHI (THROUGH VIRTUAL COURT HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 3617 /DEL/201 7 ASSESSMENT YEAR : 20 09 - 10 MAHESH MEHTA, 2042, K ATRA TOBACCO, KHARI BAOLI, DELHI. PAN: A GBPM7320C VS ACIT, CENTRAL CIRCLE - 13, NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : SHRI SURESH K. GUPTA, CA RE VENUE BY : MS PARIMITA BISWAS, SR. DR DATE OF HEARING : 30 . 07 . 20 20 DATE OF PRONOUNCEMENT : 10 . 0 8 . 20 20 ORDER PER R. K. PANDA, AM : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 31 ST MARCH, 201 7 OF THE CIT(A) - 2 8 , NEW DELHI RELATING TO ASSESSMENT YEAR 20 09 - 10 . 2. ALTHOUGH A NU MBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, THESE ALL RELATE TO THE ADDITION MADE BY THE AO OF RS.2 CRORES U/S 69 OF THE ACT IN THE ORDER PASSED U/S 263/143(3) OF THE ACT. ITA NO. 3 617 /DEL/201 7 2 3 . THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, SUBMITTED THAT THE AO PAS SED THE ORDER U/S 263/143(3) OF THE ACT ON 31 ST MARCH, 2015 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.6,28,15,410/ - WHEREIN HE MADE ADDITION OF RS.2 CRORE U/S 69 OF THE ACT WHICH THE LD. CIT(A) HAS SUSTAINED. HE SUBMITTED THAT AGAINST THE ORDER O F THE PCIT PASSED U/S 263 OF THE ACT, THE ASSESSEE PREFERRED APPEAL BEFORE THE TRIBUNAL AND THE TRIBUNAL, VIDE ITA NO.2804/DEL/2014 , ORDER DATED 12 TH MARCH, 2020, HAD QUASHED THE SECTION 263 PROCEEDINGS AND UPHELD THE ORIGINAL ASSESSMENT ORDER PASSED U/S 1 53A/143(3) OF THE ACT. HE SUBMITTED THAT SINCE THE SECTION 263 ORDER PASSED BY THE PCIT HAS BEEN QUASHED, THE SUBSEQUENT PROCEEDINGS BY THE AO BECOME INFRUCTUOUS AND, THEREFORE, THE ORDER PASSED BY THE AO AND THE CIT(A) HAVE TO BE QUASHED. 4. THE LD. D R, ON THE OTHER HAND, FAIRLY CONCEDED THAT THE ORDER PASSED BY THE PCIT U/S 263 HAS BEEN QUASHED BY THE TRIBUNAL. 5. WE FIND, THE TRIBUNAL, VIDE ITA NO.2804/DEL/2014, ORDER DATED 12 TH MARCH, 2020, COPY OF WHICH IS PLACED IN THE PAPER BOOK, HAS QUASHED THE SECTION 263 PROCEEDINGS INITIATED BY THE PCIT. SINCE THE SECTION 263 PROCEEDINGS HAVE BEEN QUASHED AND NO LONGER EXISTS, THEREFORE, THE CONSEQUENT PASSING OF ASSESSMENT ORDER U/S 263 BECOMES INVALID AND WITHOUT JURISDICTION AND VOID AB INITIO AND, THEREF ORE, THE ADDITION MADE BY THE AO IN THE PROCEEDINGS U/S 263 /143(3) WHICH HAVE BEEN UPHELD BY THE CIT(A) BECOME INFRUCTUOUS AND IS QUASHED. THE GROUNDS RAISED BY THE ASSESSEE ARE, THEREFORE, ALLOWED. ITA NO. 3 617 /DEL/201 7 3 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSE E IS ALLOWED . THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 10 .0 8 .20 20 . SD/ - SD/ - ( SU DHANSHU SRIVASTAVA ) ( R. K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10 TH AUGUST, 2020 DK COPY FORWARDED T O 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI