DCIT (E)-2(1), MUMBAI V. SIR DORABJI TATA TRUST, MUMBAI

ITA 737/MUM/2023

AI Insights

The case involves an appeal by the revenue against the order of the Commissioner of Income Tax (Appeals)/NFAC, which had allowed the appeal of Sir Dorabji Tata Trust, declaring the re-assessment order as infructuous. The trust had initially filed a return declaring nil income for the assessment year 2014-15. Following a revision order under section 263 of the Income Tax Act by the CIT(E), a re-assessment was made, which was later contested and quashed by the Tribunal. The CIT(A) found the re-assessment order to be infructuous due to the quashing of the revision order by the Tribunal, leading to the revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125752 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-05-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 09-03-2023
• Other Referred Cases: Badarinath Vs. Tamilnadu AIR 2000 (SC) 3243
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263; 143(3); 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM AND SHRI PRASHANT MAHARISHI, AM आयकर अपील सं/ I.T.A. No.737/Mum/2023 (निर्धारण वर्ा / Assessment Years: 2014-15) DCIT (E)-2(1) Room No. 608, 6 th Floor, MTNL Building, Cumballa Hill, Mumbai-400026. बिधम/ Vs. Sir Dorabji Tata Trust Bombay House, 24 Homi Mody Street, Mumbai- 400001. स्थधयी लेखध सं./जीआइआर सं./PAN/GIR No. : AAATS0494G (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) सुनवाई की तारीख / Date of Hearing: 24/05/2023 घोषणा की तारीख /Date of Pronouncement: 30/05/2023 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the revenue against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi dated 13.01.2023 for assessment year 2014-15. 2. The main grievance of the revenue is against the action of the Ld. CIT(A) allowing the appeal of the assessee. 3. Brief facts are that the assessee trust filed its return of income on 30.09.2014 for AY 2014-15 declaring total income at Rs. Nil. The assessee trust is registered as a Charitable Organization with DIT(Exemption), Mumbai u/s 12A of the Income Tax Act, 1961 (hereinafter “the Act”) dated 07.10.2009. Later, the return of income was taken up for scrutiny and original assessment u/s 143(3) of the Act was completed by AO by passing the assessment order dated 30.12.2019 which was set aside by the Ld. CIT(E) exercising his revisional jurisdiction u/s 263 of the Act vide order dated 29.03.2019. Assessee by: Shri Atul Suraiya Revenue by: Smt. Riddhi Mishra (DR) ITA No. 737/Mum/2023 A.Y. 2014-15 Sir Dorabji Tata Trust 2 And pursuant to the revision order u/s 263 of the Act dated 29.03.2019, the AO gave effect to it on 31.12.2019 u/s 143(3) r.w. section 263 of the Act by framing re-assessment of total income at Rs.128,08,46,000/-. 4. Meanwhile, the assessee trust had preferred an appeal before this Tribunal against the revision order passed by the Ld. CIT(E) u/s 263 of the Act dated 29.03.2019 which was allowed by the Tribunal in ITA. No.3909/Mum/2019 for AY 2014-15 by order dated 28.12.2020 wherein the Tribunal was pleased to quash the revision order of the Ld. CIT(E). This important fact the assessee brought to the notice of the Ld. CIT(A)/NFAC that the Tribunal has quashed the Ld. CIT(E)’s revision order u/s 263 of the Act, which was the basis for re- assessment order that has been passed by AO and pleaded that re- assessment order of AO cannot survive in the light of the Tribunal quashing Ld. CIT(E)’s section 263 revision order; and the Ld. CIT(A)/NFAC appreciating the same has upheld the plea and passed the impugned order holding that the re-assessment order dated 31.12.2019 u/s 143(3) r.w. section 263 of the Act has become infructuous. And resultantly, he allowed the appeal of the assessee. Aggrieved by the aforesaid action of the Ld. CIT(A)/NFAC, the revenue is before us. 5. We have heard both the parties and perused the records. We note that the AO has framed the re-assessment order u/s 143(3) r.w. section 263 of the Act dated 31.12.2019, pursuant to the revision order passed by Ld. CIT(E) u/s 263 of the Act dated 29.03.2019, which has been quashed by this Tribunal vide order dated 28.12.2020 (supra), ITA No. 737/Mum/2023 A.Y. 2014-15 Sir Dorabji Tata Trust 3 and therefore, the impugned action of the Ld. CIT(A) holding the action of the AO framing re-assessment as infructuous is valid because the case of the assessee trust is squarely covered by the legal Maxim “Sublato Fundamento credit opus” meaning in case foundation is removed, the super-structure falls. In the case of Badarinath Vs. Tamilnadu AIR 2000 (SC) 3243 SC the Hon’ble Supreme Court has held that once the basis of proceeding is gone, all consequential order and acts would fall on the ground automatically which is applicable to judicial and quasi-judicial proceedings. Therefore, the action of the Ld. CIT(A)/NFAC is legally correct. And therefore, the revenue appeal stands dismissed. 6. In the result, appeal of the revenue is dismissed. Order pronounced in the open court on this 30/05/2023. Sd/- Sd/- (PRASHANT MAHARISHI) (ABY T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 30/05/2023. Vijay Pal Singh, (Sr. PS) ITA No. 737/Mum/2023 A.Y. 2014-15 Sir Dorabji Tata Trust 4 आदेश की प्रनिनलनि अग्रेनर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, सत्यापपत प्रपत //True Copy// उि/सहधयक िंजीकधर /(Dy./Asstt. Registrar) आयकर अिीलीय अनर्करण, मुंबई / ITAT, Mumbai 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. पवभागीय प्रपतपनपि, आयकर अपीलीय अपिकरण, मुंबई / DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file.