OMWATI,DEHRADUN V. ITO, DEHRADUN

ITA 58/DDN/2025

AI Insights

The case involves an appeal by the assessee, Omwati, against the order of the CIT(A) at the National Faceless Appeal Centre, which dismissed her appeal concerning the disallowance of a deduction under section 54B of the Income Tax Act, 1961. The deduction was initially allowed in the reassessment completed by the Assessing Officers but was later disallowed following an order under section 263, which was deemed erroneous and prejudicial to the interest of the revenue. The Tribunal's decision to allow the appeal was influenced by a prior ITAT decision that quashed the section 263 order, leading to the setting aside of the CIT(A)'s dismissal of the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711657 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2010-2011
• Other Referred Cases: ITA No. 6853/Del/2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMAR PAL SINGH
• Assessee Lawyers: S.K. AHUJA
• Keywords: Set aside; Revision of order
• Section: 148; 143(3); 54B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH (‘SMC’): DEHRADUN BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.58/DDN/2025 (ASSESSMENT YEAR 2010-11) Omwati 170-Vasant Vihar, Phase-1, Dehradun. PAN-AANPW6438K Vs. Income Tax Officer, Ward-2(1), Dehradun. (Appellant) (Respondent) Assessee by Shri S.K.Ahuja and Shri Puneet Ahuja, Adv. Department by Sh. Amar Pal Singh, Sr. DR Date of Hearing 09/07/2025 Date of Pronouncement 23/07/2025 O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [‘the Ld. CIT(A)’ for short] dated 05.02.2025 for Assessment Year 2010-11 arising out of the order passed u/s 143(3) r.w.s. 263 of the Income Tax Act, 1961 (the Act). 2. Brief facts of the case are that the case of the assessee was reopened by issue of notice u/s 148 for the reason that deduction u/s 54B was wrongly allowed. Assessee alongwith two co-owners had sold agricultural land and purchased another land on which Printed from counselvise.com 2 ITA No.58 /Del/2025 Omwati vs. ITO deduction was claimed u/s 54B of the Act. The said deduction was allowed to the assessee and other co-owners in their respective re- assessment completed by three different Assessing Officers. The assessee filed complete details and proofs for payment of sale consideration of Rs.1,60,00,000/- by all co-owners and acquisition of agricultural land for which deduction u/s 54B was claimed. The assessee further filed copies of sale deed for purchase of agricultural land with possession, copy of khasra and khatauni, bank account of the assessee through which sale consideration was paid for acquiring agricultural land. 3. Thereafter proceedings u/s 263 was initiated by issue of notice and ld. PCIT in terms of order passed u/s 263 on 24.10.2027 held the assessment order as erroneous and prejudicial to the interest of revenue and direct the AO to make necessary enquiries with regard to the allowability of deduction u/s 54B of the Act. Aggrieved with the said revision order of Ld. Pr. CIT, the assessee filed an appeal before the Tribunal. In the meantime, the AO proceeded with the directions given by the ld. PCIT in the order passed u/s 263 of the Act and passed order u/s 263/143(3) dt. 29.10.2018 wherein the deduction claimed u/s 54B at Rs. 35,08,250/- was disallowed. Against this order, the assessee preferred an appeal before the ld. CIT(A) who despite of the informing that the order passed u/s 263 was quashed by the coordinate Delhi bench of ITAT in ITA No. 6853/Del/2017 vide order dt. 15.09.2023, dismissed the appeal of Printed from counselvise.com 3 ITA No.58 /Del/2025 Omwati vs. ITO the assessee. Thus, the present appeal is filed by the assessee before the Tribunal. 4. Heard both the parties. At the outset it is seen that the present proceedings were initiated in terms of the order passed u/s 263 of the Act dated 24.10.2017 by ld. PCIT. Since the said very order u/s 263 stood quashed by the Co-ordinate Bench of ITAT, Delhi in ITA No. 6853/Del/2017 vide order dt. 15.09.2023, thus, there remained no cause of action pending in the instant case. This being so, we set aside the impugned appellate order of Ld. CIT(A) who despite being informed by the assessee about the order of Tribunal quashing the order passed u/s 263, dismissed the appeal of the assessee. Accordingly, all the grounds of appeal of the assessee are allowed. 5. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 23.07.2025. Sd/- Sd/- (YOGESH KUMAR U.S.) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23.07.2025 PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT DEHRADUN Printed from counselvise.com "