M/S. RESULTS INVESTMENTS PVT. LTD.,CHENNAI V. ITO, CORPORATE WARD-5(3), CHENNAI

ITA 623/CHNY/2025

AI Insights

The case involves an appeal by M/s. Results Investments Pvt. Ltd. against the order of the CIT(A) which confirmed the additions made by the A.O in a reopened assessment under sections 143(3) r.w.s 147 of the Income-tax Act, 1961 for the Assessment Year 2012-13. The appeal was initially delayed, but the delay was condoned. The main contention was that the assessment order, which was the basis for the CIT(A)'s order, had been set aside by the Principal Commissioner of Income Tax (PCIT) under section 263, but this was later quashed by the ITAT. The ITAT found that the CIT(A)'s order still survived as the assessment order had been revalidated following the quashing of the PCIT's order. The ITAT noted procedural lapses in the CIT(A)'s handling of the assessee's submissions and directed a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633448 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Other Referred Cases: ITA No.399/Chny/2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R V SRINIVASAN
• Assessee Lawyers: K. RAMAKRISHNAN; C.A
• Keywords: Set aside; Revision of order
• Section: 143(3); 263

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.623/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2012-13 M/s. Results Investments Pvt. Ltd., 480, Khivraj Complex, Second Floor, Anna Salai, Nandanam, Chennai – 600 035. Vs. The Income Tax Officer, Corporate Ward-5(3), Chennai. [PAN: AACCR 8029F] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri K. Ramakrishnan, C.A HIथF की ओर से /Respondent by : Shri ARV Srinivasan, CIT सुनवा ई की ता रीख/Date of Hearing : 10.06.2025 घोषणा की ता रीख /Date of Pronouncement : 11.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2012-13 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 22.07.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 147 of the Income-tax Act, 1961 (hereinafter “the Act”) dated 06.12.2019. ITA No.623/Chny/2025 :- 2 -: 2. There is a delay of 151 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. At the outset, The Ld. Authorized Representative (A.R) of the assessee has submitted that the impugned assessment order involved in the appeal has been set aside by Ld. PCIT u/s. 263 of the Act, vide order dated 30.03.2022, therefore the order of Ld CIT(A) does not survive and is infructous. The Ld AR further submitted that the assessee challenged the order u/s. 263 of the Act and the Hon’ble ITAT, has quashed the order passed by the Ld. PCIT u/s 263. The Ld AR further submitted that the A.O has passed fresh assessment order in compliance with the directions of the Ld. PCIT, and the same has been quashed by Ld. CIT(A) in view of order of Hon’ble ITAT order dated 13.04.2023. The Ld. AR has contended that the appellate order passed by the Ld. CIT(A) has become infructuous, as it was based on order that was no longer in existence. The Ld. AR, further argued that the Ld. CIT(A) has confirmed the addition without providing proper opportunity. ITA No.623/Chny/2025 :- 3 -: 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the order Ld. CIT(A). 5. We have heard the rival submissions, and perused the materials available on record. The assessment in this case was passed on 30.01.2015 accepting the return of income of Rs.8,10,51,130/-. Subsequently, the A.O reopened the assessment and passed assessment order u/s. 147/143(3) of the Act assessing total income at Rs.10,99,98,199/-. The assessee filled appeal against the above order and Ld. CIT(A) confirmed the addition observing that assessee has not complied with the last notice issued on 19.05.2024 and that assessee during appellate proceeding also did not make any submission supporting its claim of expenses which were disallowed in 147/143(3) of the Act order. The Ld AR has argued that the order passed by Ld. CIT(A) is infructous as the assessment order passed u/s. 147/143(3) of the Act has been set aside by Ld. PCIT. We do not agree with the Ld. AR’s contention, because the order passed by Ld. PCIT u/s. 263 of the Act setting aside the impugned assessment order has been quashed by the ITAT in ITA No.399/Chny/2022 dated 13.04.2023 and therefore, the assessment order passed by A.O u/s. 147/143(3) of the Act becomes alive and survives. Consequently, the order of Ld. CIT(A) ITA No.623/Chny/2025 :- 4 -: against the above assessment order also survives. We, therefore reject the Ld AR’s argument. 6. Now coming to the order of Ld CIT(A), we find that Ld. CIT(A) has issued notice on 20.01.2021 and 17.11.2021, which were not complied. The period was pertaining to Covid-19. The assessee has made part compliance of notice dated 19.03.2024 and not complied with notice dated 19.05.2024. The Ld. CIT(A) has confirmed the disallowances for the reason that the assessee has not made any submission in support of his claim of expenses. In view of above, we deem it fit to remit the matter to the file of Ld. CIT(A) to decide the appeal afresh after affording proper opportunity to the assessee. We also direct the assessee to submit all the evidences in support of the claim of expenses disallowed by the A.O. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 11th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 11th June, 2025. EDN/- ITA No.623/Chny/2025 :- 5 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "