LINDE ENGINEERING PVT LTD,VADODARA V. THE ACIT, CIRCLE-1(1)(1), VADODARA, VADODARA

CO 94/AHD/2025

AI Insights

This case involves an appeal by the Revenue against an order of the Ld. Commissioner of Income Tax (Appeals), which had deleted a disallowance under section 10A amounting to Rs.31,74,80,850. The assessee, M/s. Linde Engineering Pvt. Ltd., also filed a Cross Objection against the assessment order passed under section 143(3) read with section 263, which was claimed to be void ab initio following a prior ITAT decision. The core legal issue revolved around the validity of the assessment proceedings post the quashing of the section 263 order by the ITAT in a previous case involving the same assessee.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830025 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 12-12-2025
• Other Referred Cases: ITA No. 3846/Del/2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Revision of order
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER ITA No. 1983/Ahd/2025 & CO No. 94/Ahd/2025 (Assessment Year: 2011-12) Asstt. Commissioner of Income-tax, Circle 1(1)(1), Vadodara Vs. M/s. Linde Engineering Pvt. Ltd., Linde House, Near Nilambar Circle, Vadodara-391410 [PAN : AAACL 0084 E] (Appellant) .. (Respondent & Cross-objector) Appellant represented by : Shri R.P. Rastogi, CIT-DR Respondent represented by: Shri S.N. Soparkar, Sr. Advocate Date of Hearing 12.01.2026 Date of Pronouncement 13.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal by the Revenue and the Cross Objection by the assessee arise out of the order dated 20.08.2025 passed by the Ld. Commissioner of Income Tax (Appeals), Ahmedabad-13, [hereinafter referred to as “Ld. CIT(A)”] under section 250 of the Income- tax Act, 1961 [“the Act”] for the Assessment Year (AY) 2011-12. 2. The Revenue has raised following grounds of appeal :- “On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance u/s 10A amounting to Rs.31,74,80,850/- without appreciating the facts that as per the provisions of section 92C(4) of the Act, no deduction u/s 10A is allowable in respect of amount of income by which the total income of the assessee is enhanced as a result of computation of arm's length price.” 3. The assessee has raised following grounds in its Cross-Objection:- “1. On the facts and circumstances of the case and in law, Ld. AO erred in making an assessment, under section 143(3) r.w.s. 263 of the Act, without appreciating that proceedings under section 263 of the Act were invalid and hence quashed by the Hon'ble Income Tax Appellate Tribunal ('ITAT) vide order dated 30 March 2022. Consequently, the Respondent prays that the entire assessment proceedings under section 143(3) r.ws. 263 of the Act were void-ab-initio, illegal, bad in law and therefore liable to be quashed. Printed from counselvise.com ITA No. 1983/Ahd/2025 & CO No. 94/Ahd/2025 ACIT Vs. Linde Engineering Pvt Ltd Asst. Year : 2011-12 - 2– 2. Without prejudice to the above, on the facts and circumstances of the case and in law, the Ld. AO erred in disallowing the claim of deduction under section 10A of the Act amounting to INR 31,74,80,850. Accordingly, the Respondent prays that disallowance of the claim of deduction under section 10A of the Act be deleted.” 3. At the very outset, Ld. Senior Advocate appearing on behalf of the assessee, invited our attention to the order dated 30.03.2022 passed by this Tribunal in ITA No. 3846/Del/2018 for AY 2011-12, in the case of the assessee itself, whereby the revisionary order passed by the Ld. Pr. CIT u/s 263 of the Act has been set aside. The Ld. Senior Advocate submitted that once the order u/s 263 of the Act has been set aside by the Tribunal, the consequential assessment order passed u/s 143(3) r.w.s. 263 of the Act does not survive in the eyes of law. Consequently, any appellate proceedings arising out of such assessment order, including the order passed by the Ld. CIT(A), are rendered void ab initio and non est. 4. We have heard the rival submissions and perused the material available record. It is an undisputed fact that the assessment order giving rise to the present appeal and Cross Objection was framed u/s 143(3) r.w.s. 263 of the Act. Since the very foundation of the assessment, namely the order passed u/s 263 of the Act, has already been quashed by the Tribunal, the consequential assessment order has no legs to stand on and is void ab initio. Consequently, the appellate order passed by the Ld. CIT(A) and the issues raised therein do not survive for adjudication on merits. 5. In the result, the appeal filed by the Revenue is dismissed, and the Cross Objection filed by the assessee is also dismissed as infructuous. The order is pronounced in the open Court on 13.01.2026. Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 13.01.2026 **btk Printed from counselvise.com ITA No. 1983/Ahd/2025 & CO No. 94/Ahd/2025 ACIT Vs. Linde Engineering Pvt Ltd Asst. Year : 2011-12 - 3– आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation … ……………..12.01.2026 2. Date on which the typed draft is placed before the Dictating Member ….12.01.2026 3. Other Member …12.01.2026 4. Date on which the approved draft comes to the Sr.P.S./P.S …..12.01.2026 5. Date on which the fair order is placed before the Dictating Member for pronouncement …..13.01.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S ….13.01.2026 7. Date on which the file goes to the Bench Clerk …13.01.2026 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "