SCAN INDURSTRIES PRIVATE LIMITED,SUNDARGARH V. PR. CIT, SAMBALPUR

ITA 102/CTK/2024

AI Insights

The case involves an appeal by Scan Industries Private Limited against the order of the Pr. CIT, Sambalpur, under section 263 of the Income Tax Act, 1961, for the assessment year 2014-15. The primary contention was regarding the validity of the original assessment order passed under sections 147 and 144B, which was challenged on the grounds that the notice under section 148 was issued beyond the permissible date. The tribunal examined the e-assessment proceedings and found discrepancies in the dates mentioned in the assessment order and the actual issuance of the notice, leading to the conclusion that the assessment order was invalid and consequently, the revisionary proceedings under section 263 were also invalid.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47132 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: S.K. PODDAR
• Keywords: Set aside; Revision of order
• Section: 147; 148; 263; 20

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.102/CTK/2024 (नििाारण वर्ा / Assessment Year : 2014-2015) Scan Industries Private Limited, Q1, Civil Township, Rourkela Vs Pr.CIT, Sambalpur PAN No. :AEOPS 8527 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri S. K. Poddar, AR राजस्व की ओर से /Revenue by : Shri Sanjay Kumar, CIT-DR सुनवाई की तारीख / Date of Hearing : 07/04/2025 घोषणा की तारीख/Date of Pronouncement : 07/04/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order passed by the ld PR. CIT, Sambalpur u/s.263 of the Income Tax Act, 1961 for the assessment year 2014-15 in DIN & Order No.ITBA/REV/F/REV5/2023- 24/1060101431(1). 2. It was submitted by ld AR that before the ld Pr. CIT, Sambalpur, in response to show cause notice u/s.263 of the Act, the assessee had categorically submitted that the original assessment order, which was passed u/s.147/144B of the Act dated 30.3.2022 itself was bad in law, insofar as the notice issued u/s.148 of the Act was issued only on 1.4.2021 and not on 31.3.2021, which was the last date for issuance of notice u/s.148 of the Act. Ld AR drew our attention to page 20 of written ITA No.102/CTK/2024 2 submission, which is the screenshots of the e-assessment proceedings u/s.147 of the Act, which reads as follows: - ITA No.102/CTK/2024 3 3. It was submission that the PR. CIT in his order u/s 263 of the Act at the end of para 9 at page 14 of the order has mentioned that notice u/s 148 was issued on 31.03.2021 which was well within the time limit prescribed 149(1)(b) of the Act. It was the submission that this finding of Ld Pr.CIT was wrong, insofar as the notice u/s.148 of the Act has been issued only on 01.04.2021 which is evidenced by the assessment proceedings order sheet notings which has been extracted above. It was submitted that consequently as the assessment proceedings is itself bad in law, the consequential proceedings u/s 263 are liable to set aside. 4. In reply ld CIT DR vehemently supported the order of the Pr. CIT. It was the submission that the notice u/s 148 of the Act was issued and the assessment order has been accepted by the asssessee and should not be tinkered with. 5. We have considered the rival submissions. The primary requirement for 263 revisionary proceeding is the existence of a valid assessment order. Admittedly, the assessment order, which is the subject matter of the revisionary proceedings u/s 263 is the assessment order passed u/s 147 r.w.s.144B of the Act on 30.03.2022. This assessment order has been initiated on account of notice issued u/s 148 of the Act. The said notice u/s 148 in the assessment order in para 3 also specifically mentioned to have been issued on 31.03.2021. However, the screenshot of the notice of e-proceeding which has been extracted above clearly shows that the notice u/s 148 has been issued on 1.04.2021. Admittedly, this notice issued itself would be bad in law and consequential ITA No.102/CTK/2024 4 assessment order would be bad in law. Obviously, once the assessment order itself is bad in law, the revisionary proceedings u/s 263 passed by the Pr. CIT on such invalid assessment order would also be bad in law. In these circumstances, the order passed u/s 263 by the Pr. CIT in the case of the assesee for the impugned assessment order is set aside as being bad in law. 6. In the result, the appeal of the assessee stands allowed Order dictated and pronounced in the open court on 07/04/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 07/04/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "