The Dy. Commissioner of Income Tax , Anand Circle, Anand V. M/s. Elecon Engineering Co. Ltd., Anand

ITA 5/AHD/2023

AI Insights

The case involves two appeals by the Revenue against the orders passed by the CIT(A), which had nullified the AO's orders under section 143(3) r.w.s. 263 of the Act. These original orders were based on a revisionary order under section 263 by the Pr.CIT, which was later quashed by the Tribunal. The CIT(A) found the subsequent AO's orders to be infructuous following the Tribunal's decision, leading to the Revenue's appeals being dismissed as they no longer had a cause of action.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133585 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 21-02-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 02-01-2023
• Other Referred Cases: Elecon EPC Projects Ltd. (ITA No. 1403/Ahd/2018)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 263; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘C’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.439/Ahd/2022 Assessment Year :2013-14 The DCIT, Anand Circle Anand 388 001. M/s.Elecon Engineering Co.Ltd. (Earlier known as M/s.Elecon EPC Projects Ltd.) Post Box No.6, Anand Sojitra Road Vallabh Vidyanagar PAN : AACE 4644 D ITA No.5/Ahd/2023 Assessment Year :2013-14 The DCIT, Anand Circle Anand 388 001. M/s.Elecon Engineering Co.Ltd. Post Box No.6, Anand Sojitra Road Vallabh Vidyanagar PAN : AACE 4644 D (Applicant) (Responent) Assesseeby : Shri M. K. Patel, Advocate Revenue by : Shri Rakesh Jha, Sr.DR स ु नवाई क तार ख/Date of Hearing : 22/02/2023 घोषणा क तार ख /Date of Pronouncement: 24/02/2023 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present two appeals have been filed by the Revenue against orders passed by the ld. Commissioner of Income Tax ITA No.439/Ahd/2022 & 5/Ahd/2023 2 (Appeals), National Faceless Appeal Centre (NFAC), Delhi Ahmedabad[hereinafter referred to as “Ld.CIT(A)-NFAC” under section 250(6) of the Income Tax Act, 1961 ("the Act" for short) dated 4.11.2022 and 19.9.2022 pertaining to the Asst.Year 2013-14. Both the appeals have arisen in orders passed by AO under section 143(3) of the Act consequent to revisionary order of the Pr.CIT under section 263 of the Act. 2. At the outset, the ld.counsel for the assessee has pointed out that the original assessment orders in both the cases under section 143(3) of the Act both dated 22.3.2016 was set aside by the ld.Pr.CIT under section 263 of the Act on 27.3.2018. This order was challenged by the assessee before the Tribunal in ITA No.1402 & 1403/Ahd/2018 and the Tribunal vide common order dated 13.7.2022 quashed 263 order. The concluding para 10.3 and 11 are as under: “10.3. Respectfully following the above judgment of the Hon’ble Jurisdictional High Court, we have no hesitation in quashing the revision order dated 27.03.2018 passed u/s. 263 by the Ld. Pr.CIT-2, Vadodara is not in accordance with law and therefore the same is hereby quashed. The grounds of appeal raised by the Assessee are hereby allowed. 11. The Revision order passed in Elecon EPC Projects Ltd. (ITA No. 1403/Ahd/2018) is also on identical grounds and the same is also quashed following the finding in ITA No. 1402/Ahd/2018.” In the meanwhile, on 21.12.2018 the ld.AO passed order under section 143(3) r.w.s. 263 of the Act giving effect to the ITA No.439/Ahd/2022 & 5/Ahd/2023 3 Pr.CIT’s order 27.3.2018. This order of the ld.AO was challenged by the assessee before the ld.CIT(A), and the ld.CIT(A) considering the fact that since ITAT has quashed the proceedings under section 263 of the Act, the consequential order passed under section 143(3)/263 of the Act has become infrucuous, he accordingly treated order of the AO as null and void. The relevant para-5.1 of the ld.CIT(A) reads as under: “5.1 I have considered the submission of the assessee carefully. The order under impugned appeal was passed u/s. 143(3) r.w.s. 263 of IT. Act. As duly submitted by the appellant, that jurisdictional ITAT vide its order dated 13.0J7.2022 has quashed the proceeding initiated by Pr.CIT u/s.263 of IT. Act. Therefore, having considered the above facts since ITAT has quashed the proceeding u/s|263 of IT. Act, the consequential order passed u/s. 143(3) r.w.s. 263 of IT. Act has- become infructuous, therefore, the order passed by the AO u/s. 143(3) r.w.s. 263 of IT. Act which is the subject matter of impugned appeal is hereby treated as infructuous, null and void. As a result, the appeal filed by the assessee is allowed. The ld.counsel for the assessee, accordingly, submitted that in view of cancellation of order of the AO under section 143(3)/263 of the Act by the ld.CIT(A) in the light of the Tribunal’s order dated 13.7.2022, the appeals of the Revenue are infructuous and accordingly liable to be dismissed for want of cause of action. 3. On the other hand, the ld.DR was unable to dispute the factual position of the matter, and conceded to the submissions of the ld.counsel for the assessee. ITA No.439/Ahd/2022 & 5/Ahd/2023 4 4. Heard both the parties, perused orders of the authorities below, and order of the Tribunal dated 13.7.2022 cited (supra). We find that both appeals of the Revenue do not survive, more so, the ld.DR was unable to point out any new facts or contest the above submissions of the ld.counsel for the assessee before us. Thus, both appeals of the Revenue are dismissed. 5. In the result, the appeals of the Revenue are dismissed. Order pronounced in the Court on 24 th February, 2023 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 24/02/2023