Anuj Bansal, Delhi V. Pr CIT, New Delhi

ITA 948/DEL/2022

AI Insights

The case involves an appeal by Anuj Bansal against a revisional order passed by the Principal Commissioner of Income Tax, Central-2, New Delhi, concerning the Assessment Year 2017-18. The revisional order sought to revise an earlier assessment order which had been quashed by the Income Tax Appellate Tribunal (ITAT) in a separate case. The primary contention was whether the revisional powers under Section 263 could be exercised on an assessment order that had already been quashed and ceased to exist. The tribunal concluded that the revisional proceedings were invalid as they were based on a nonest assessment order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121474 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 05-05-2022
• Other Referred Cases: ITA No.1016/Del/2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 263; 143(3); 153A; 153

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A No.948/DEL/2022 Assessment Year 2017-18 Anuj Bansal, Prop. M/s. MAA & Sons, c/o Kapil Goel, Adv. F-26/124, Sector-7, Rohini, Delhi. v. Pr. Commissioner of Income Tax, Central-2, New Delhi. TAN/PAN: AGLPB0846N (Appellant) (Respondent) Appellant by: Shri Kapil Goel, Adv. Shri Sandeep Goel, Adv. Respondent by: Shri P. Praveen Sidharth, CIT-DR Date of hearing: 17 01 2023 Date of pronouncement: 17 01 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the assessee against the revisional order of the Principal Commissioner of Inco me Tax, C entral-2, Ne w Delhi (Pr.C IT) dated 31.03.2022 passed under Section 143(3) r.w. Section 153A of the Act concerning Assessment Year 2017-18. 2. When the matter was called for hea ring, the ld. counsel for the assessee submitted that the present appeal is directed against the revisional order passed by Pr .CIT seeking to revise the assessment order dated 31.12.2019 passed under Section 153 r.w. Section 143(3) of the Act concerning Assessment Year I.T.A No.948/Del/2022 2 2017-18. The ld. counsel next sub mitted that the i mpugned assessment order sought to be revised by the Pr .CI T has been quashed by the ITAT in ITA No .1016/Del/2021 order dated 29.04.2022. It was thus contended that the assess ment order has ceased to exist by virtue of ITAT order and consequently the revisional power under Section 263 cannot subsist anymo re. The ld. counsel thus submitted that the revisional order passed under Section 263 arising from a nonest assessment order also requires to be quashed. 3. The ld. DR for th e Revenue, on the other hand, submitted that; (i) the order of the ITAT quashing the assess ment order has been passed on 29.04.2022, i.e., subsequent to 263 order dated 31.12.2019 at which point of time the assessment order was in force and therefore, the exercise of power under Section 263 cannot be impugned on the grounds of subsequent order of the Tribunal (ii) the Depart ment has preferred appeal before the Hon’ble High Court against the quashing of the assessment order and therefore, the powers conferred under Section 263 cannot be taken awa y in such a situation. 4. We have carefully considered the rival submissions. It is an ad mitted position that the assessment order which has been revised in exercise of powers conferred under Section 263 of the Act by the Pr.CI T has lost the force of law and does not survive in the light of the appellate order of the Tribunal in ITA no.1016/Del/2021 order dated 29.04.2022. This being the I.T.A No.948/Del/2022 3 position, the 263 proceedings on a nonest assessment order thus has to be regarded as invalid proceedings. The revisional order passed is bad in law and requires to be quashed. However, in a situation where the Superior Authority / Court r evives the assessment order on any ground, the revisional authority shall be at liberty to ex ercise powers conferred under Section 263 in accordance with law. With these re marks, the proceedings under Section 263 and consequential revisional order in question stand quashed. 5. In the result, the a ppeal of the assessee is allowed. Order pronounced in the open Court on 17/01/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /01/2023 Prabhat