WINVEST HOLDINGS [INDIA] PRIVATE LIMITED [ AMALGAMATED WITH OPC ASSET SOLUTIONS PRIVATE LIMITED ], CHENNAI V. DCIT ,CORPORATE CIRCLE -3 [2], CHENNAI

ITA 436/CHNY/2022

AI Insights

The case involves an appeal by M/s. Winvest Holdings (India)- Pvt. Ltd. against the revision order passed by the Principal Commissioner of Income Tax (PCIT) under section 263 of the Income Tax Act, 1961, dated 31.03.2022, for the assessment year 2017-18. The appeal was heard by the Income Tax Appellate Tribunal in Chennai. The primary contention was the non-passage of a consequential assessment order by the AO within the prescribed time frame following the PCIT's revision order. The assessee's counsel argued that without this order, there was no cause of action to sustain the appeal. The CIT-DR did not object to the dismissal of the appeal as withdrawn.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127922 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-08-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 26-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपील सं./ITA No.436/Chny/2022 िनधा रण वष /Assessment Year: 2017-18 M/s.Winvest Holdings (India)- Pvt. Ltd., (Amalgamated with OPC- Asset Solutions Pvt. Ltd.), Door No.4, 7 th Floor, Alsa Towers, 186 Poonamalle High Road, Kilpauk, Chennai-600 010. v. The Dy. Commissioner- of Income Tax, Corporate Circle-3(2), Chennai. [PAN: AAACW 7724 Q] (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : Mr.K.R.Sekar, CA & Mr.S.P.Chidambaram, Adv. यथ क ओर से /Respondent by : Mr.S. Senthil Kumaran, CIT सुनवाई क तारीख/Date of Hearing : 24.08.2023 घोषणा क तारीख /Date of Pronouncement : 30.08.2023 आदेश / O R D E R PER MANJUNATHA.G, AM: This appeal filed by the assessee is directed against the order of the Principal Commissioner of Income Tax, Chennai-3, dated 31.03.2022, and pertains to assessment year 2017-18. आयकर अपीलीय अिधकरण, ‘बी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा .जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER ITA No.436/Chny/2022 :: 2 :: 2. At the time of hearing, Ld.Counsel for the assessee, Mr.K.R.Sekar, CA & Mr.S.P.Chidambaram, Adv, submits that the assessee has filed appeal against revision order passed by the PCIT u/s.263 of the Income Tax Act, 1961 (in short “the Act") dated 31.03.2022. The present appeal filed by the assessee becomes infructuous, because, there is no cause of action for the assessee as the consequential assessment order required to be passed u/s.143(3) r.w.s.263 of the Act, as per provisions of Sec.153(5) r.w.s.153(3) of the Act, is not passed within the time allowed under the Act. In the present case, the PCIT has passed order u/s.263 of the Act on 31.03.2022, and as per limitation provided u/s.153(5) r.w.s.153(3) of the Act, the AO ought to have passed consequential assessment order within 12 months from the end of the Financial Year, in which, order u/s.263 of the Act, is passed. If you go by the date of order passed u/s.263 of the Act on 31.03.2022, the AO ought to have passed assessment order u/s.143(3) r.w.s.263 of the Act, on 31.03.2023. But, in the present case, no order was passed within the time limit provided under the Act, which is evident from screenshot of the IT e-filing portal, where, it shows that limitation date is on 30.09.2023. Since, there is no consequential order was passed, there is no cause of action for the assessee, and thus, appeal filed by the assessee may be dismissed as withdrawn. ITA No.436/Chny/2022 :: 3 :: 3. The ld.CIT-DR, Mr.S.Senthil Kumaran, has no objection for dismissal of appeal filed by the assessee as withdrawn. 4. We have heard both the parties, and considered relevant submissions of either parties and we find that the Ld.Counsel for the assessee has filed a letter for withdrawal of the appeal on the ground that there is no cause of action for the assessee, because, the AO has not passed consequential assessment order u/s.143(3) r.w.s.263 of the Act, within the time allowed under the Act. We find that as per the details filed by the assessee, the AO has not passed consequential order u/s.143(3) r.w.s.263 of the Act, within the time allowed under the Act as evident from screenshot of IT e-filing portal. From the above, it appears that no order has been passed to give effect to the order passed by the PCIT u/s.263 of the Act. Since, there is no order giving effect to revision order passed by the PCIT, there is no cause of action for the assessee to pursue its appeal filed before the Tribunal. Therefore, considering the above facts and circumstances and also the letter filed by the assessee for withdrawal of the appeal, we dismiss the appeal filed by the assessee as withdrawn. However, a liberty is given to the assessee to file appropriate application for restoration of appeal, subsequently, it has come to the notice of the ITA No.436/Chny/2022 :: 4 :: assessee that the assessment order ought to have been passed by the AO within time limit provided under the Act has been passed. 5. In the result, appeal filed by the assessee is dismissed. Order pronounced on the 30 th day of August, 2023, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 30 th August, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 3. आयकर आयु"/CIT 5. गाड फाईल/GF 2. यथ /Respondent 4. िवभागीय ितिनिध/DR