ITO, WARD 4(5), FARIDABAD V. SHEELA DEVI ( WIFE - LEGAL HEIR OF VAS DEV (DECEASED)), DELHI

MA 290/DEL/2022

AI Insights

The case revolves around a Miscellaneous Application filed by the Revenue challenging an appellate order that quashed a revisional order under section 263 of the Income Tax Act, 1961. The original revisional order was contested due to procedural improprieties, specifically the lack of opportunity for the assessee and the issuance of a notice to a deceased individual. The Tribunal's decision to quash the revisional order was based on these grounds, which the Revenue sought to overturn through the M.A. However, the Tribunal found that the Revenue's application did not present any 'mistake apparent from the record' as required under section 254(2) of the Act, leading to the dismissal of the M.A.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470385 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSARA
• Section: 263; 254(2); 2

Judgement Text

"M.A.No.290/Del/2022 [In ITA No.1853/Del/2021] Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “F-FRIDAY” BENCH: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER M.A.No.290/Del/2022 [In ITA No.1853/Del/2021] [Assessment Year : 2011-12] ITO Ward-4(5) Faridabad vs Sheela Devi (Wife-Legal Heir of Vas Dev) [Deceased] C-77, Defence Colony, LGF New Delhi-110024 PAN-BBRPD6119C APPELLANT RESPONDENT Appellant by Ms. Harpreet Kaur Hansara, Sr. DR Respondent by None Date of Hearing 14.02.2025 Date of Pronouncement 14.02.2025 ORDER PER PRADIP KUMAR KEDIA, AM : The Revenue has filed Misc. Application dated 21.09.2022 under s. 254(2) of the Income Tax Act, 1961 (“the Act”) seeking to challenge the appellate order passed by the Tribunal under s. 254(1) of the Act in ITA No.1853/Del/2021 order dated 03.03.2022 for the Assessment Year 2011-12. 2. At the time of hearing, no one attended the proceedings on behalf of the assessee. 3. When the MA was placed for hearing, the Ld. Sr. DR for the Revenue pointed out that the Tribunal vide order dated 03.03.2022 in ITA No.1853/Del/2021 quashed the revisional order passed under s. 263 of the Act solely on the ground of lack of opportunity to the assessee in the course of 263 proceedings. The Ld. Sr. DR contended that such action of the Tribunal resulting in quashing the 263 order is prima-facie unjustified. The Ld. Sr. DR submitted that the assessee obtained relief before the AO based on incorrect facts which was sought corrected by the Pr.CIT in exercise of powers conferred M.A.No.290/Del/2022 [In ITA No.1853/Del/2021] Page | 2 under s. 263 of the Act. Such exercise of power could not have been faulted by the ITAT. 4. On perusal of Tribunal order passed under s. 254(1) of the Act, it is noticed that revisional order based under s. 263 was quashed on two points:- (1) issuance of show cause notice under s. 263 of the Act against dead person which was held to be null and void in the light of judicial precedents. (2) lack of opportunity which is explicit requirement of s. 263 resulting in consequential revisional order to be a nullity. 5. The view that lack of opportunity has vitiated the revisional order is based on nuanced understanding of express language employed in the statutory enactment of s. 263 of the Act as well as view expressed in other judicial precedents. Thus, challenge to such view taken in the appellate order passed under s. 254(1) of the Act tantamount to review of the order and cannot be regarded as an error, if any, in the league of ‘mistake apparent from the record contemplated under s. 254(2) of the Act’. The M.A filed by the Revenue is thus devoid of any merit. 6. In the result, the Misc. Application filed by the Revenue is dismissed. Order pronounced in the open Court on 14th February, 2025. Sd/- Sd/- (MAHAVIR SINGH) VICE PRESIDENT * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER ASSISTANT REGISTRAR ITAT, NEW DELHI "