SHISHUKUNJ EDUCATIONAL SOCIETY ,INDORE V. PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) BHOPAL, BHOPAL

ITA 905/IND/2024

AI Insights

The case involves M/s Shishukunj Educational Society, which appealed against a rectification order issued by the PCIT (Central), Bhopal. The rectification order was based on an original order that had been quashed by the ITAT, Indore in a previous case. The appellant argued that the rectification order was invalid as it relied on a non-existent original order. The Departmental Representative did not object to the quashing of the rectification order but requested that the appeal be kept in abeyance pending further examination by the authorities. The Tribunal agreed with the appellant's position and quashed the rectification order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705646 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2023-2024
• Other Referred Cases: ITA No. 806/Ind/2026
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORREVENUEDOESNOTHAVEANYOBJECTION.HENCE; THEREVISEDGROUNDSAS; FORASSESSEEREFERREDABOVEGROUNDSANDMADEA; FORREVENUECOULDNOTREBUTTHESUBMISSIONOFLD.ARBUT; SHRIANOOPSINGH
• Assessee Lawyers: SHRIGAGANTIWARI
• Keywords: Rectification of order
• Section: 154

Judgement Text

"Page 1 of 4 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.905/Ind/2024 M/s Shishukunj Educational Society, Shishukunj International School, Gram- Jhalaria bypass Road, Jhalaria, Indore बनाम / Vs. Pr. CIT (Central) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AABAS8128B Assessee by Shri Gagan Tiwari, AR Revenue by Shri Anoop Singh, CIT-DR Date of Hearing 26.06.2025 Date of Pronouncement 30.06.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by rectification-order bearing DIN: ITBA/COM/F/17/2024-25/1070697227(1) and dated 27.11.2024 passed by learned PCIT (Central), Bhopal [“PCIT(Central)”] u/s 154 of Income-tax Act, 1961 [“the Act”], the assessee has filed this appeal. 2. Originally, the assessee filed as many as 6 grounds (with several sub- grounds) in Form No. 36 but subsequently the assessee filed only 3 concise/revised grounds vide application dated 25.08.2025. Ld. AR for M/s Shishukunj Educational Society ITA No. 905/Ind/2024 Page 2 of 4 assessee submitted that the present appeal was filed by assessee on 20.12.2024 assailing the rectification-order dated 27.11.2024 passed by Ld. PCIT(Central) wherein the Ld. PCIT(Central) has rectified his original order bearing DIN: ITBA/COM/F/17/2024-25/1069282841(1) dated 30.09.2024. However, the said original order passed by Ld. PCIT(Central) has already been quashed by ITAT, Indore in ITA No. 806/Ind/2026 order dated 28.04.2025 (Para no. 21 of order). Therefore, due to such development, there is a necessity to revise grounds and the grounds so revised, as mentioned below, would be sufficient to resolve assessee’s grievance. Ld. DR for revenue does not have any objection. Hence, the revised grounds as under, are taken on record and being adjudicated: “a. That the Ld. Authority has erred in law and on facts in passing the impugned rectification order, which was premised entirely on the original order dated 30/09/2024 cancelling the Appellant's registration under Section 10(23C)(vi) of the Income Tax Act. b. That the Ld. Authority has erred in law in passing the impugned rectification order, as subsequent to its issuance, the Hon'ble Tribunal, vide order dated 28/04/2025 in ITA No. 806/IND/2024, has quashed the original order dated 30/09/2024, thereby nullifying the very foundation on which the rectification was based. Consequently, the impugned rectification order is rendered infructuous, void ab initio, and legally unsustainable, as it cannot independently survive in the absence of the original order. c. That the continuation or enforcement of the rectification order in the absence of the original order amounts to a manifest error, and is in direct contravention of settled principles of law, including the doctrine of consequential invalidity.” 3. Ld. AR for assessee referred above grounds and made a straightforward submission that since the original order dated 30.09.2024 passed by Ld. PCIT stands quashed by ITAT, the rectification-order dated M/s Shishukunj Educational Society ITA No. 905/Ind/2024 Page 3 of 4 27.11.2024 passed by Ld. PCIT has no legs to stand and cannot survive. Ld. AR submitted that in this situation, the impugned rectification-order passed by Ld. PCIT(Central) is rendered infructuous and prays to quash the impugned rectification-order passed by Ld. PCIT(Central). 4. Ld. DR for revenue could not rebut the submission of Ld. AR but, however, made a limited request that the present appeal may be kept in abeyance since the authorities are examining the aforesaid order dated 28.04.2025 passed by ITAT quashing the original order. According to Ld. DR, the authorities are exploring the course of action to be taken. 5. We have considered submissions of both sides. After a careful consideration, we find merit in the submission of Ld. AR. We find that the present appeal is against rectification-order dated 27.11.2024 by which the Ld. PCIT(Central) has rectified original order dated 30.09.2024 but the said original order has already been quashed by ITAT, Indore Bench. Therefore, when the original order has been quashed, the same becomes non-est and the rectification-order being contested in present appeal cannot rectify a non-est order. Hence at present, we have no hesitation in quashing the rectification-order also; the same is hereby quashed by this order. 6. So far as the Ld. DR’s concern is concerned, the authorities shall have all rights to take appropriate course of action this order as well. M/s Shishukunj Educational Society ITA No. 905/Ind/2024 Page 4 of 4 7. Resultantly, this appeal is allowed. Order pronounced in open court on 30/06/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 30/06/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "