VISHAL PAPER TECH (INDIA) LIMITED,DERABASSI V. ACIT CIRCLE-2(1), CHANDIGARH

ITA 404/CHANDI/2023

AI Insights

The case involves Vishal Paper Tech (India) Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) dated 08.05.2023 for the assessment year 2015-16. The original assessment order was passed on 17.11.2017 under Section 143(3) of the Income Tax Act, which was later revised under Section 263, leading to a new assessment order on 27.03.2022. The CIT(A) dismissed the appeal against the original assessment order as not maintainable following the revision. The Tribunal found that the CIT(A) should have adjudicated the issue of additional depreciation, which was still relevant and pending, and thus set aside the CIT(A)'s decision and restored the matter to the Assessing Officer for re-adjudication post the CIT(A)'s decision on the revised assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46811 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: ATUL GOYAL
• Keywords: Set aside; Depreciation; Additional depreciation
• Section: 144; 143(3); 263

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 404/CHD/2023 नधा\u0011रण वष\u0011 / Assessment Year: 2015-16 Vishal Paper Tech (India) Ltd., Plot No.99, Paper Mill, Village-Mubarakpur, Dera Bassi (Punjab). Vs The ACIT, Circle 2(1), Chandigarh. \u0016थायी लेखा सं./PAN NO: AAACV5110H अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Shri Atul Goyal, CA Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 01.04.2025 Date of Pronouncement : 08.04.2025 HYBRID HEARING O R D E R PER RAJPAL YADAV, VP The assessee is in appeal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 08.05.2023 passed for assessment year 2015-16. This appeal was filed before the CIT(A) against the assessment order dated 17.11.2017 passed under Section 143(3) of the Income Tax Act. ITA No.404/CHD/2023 A.Y. 2015-16 2 2. With the assistance of ld. Representative, we have gone through the record carefully. It emerges out from the record that assessee has filed its return of income on 30.09.2015 and assessment order was passed under Section 143(3) of the Act on 17.11.2017. Against this assessment order, an appeal was filed before the CIT(A). The ld. Counsel for the assessee pointed out that this appeal was dismissed for want of prosecution and matter was carried in Tribunal who has set aside the issue to the CIT(A) and the CIT(A) decided the appeal by observing as under : “2. In this case assessment u/s.143(3) of the Act was completed on 17.11.2017. Subsequently an order u/s. 263. dated 24.03.2021 was passed by Pr. Commissioner of Income Tax-1, Chandigarh wherein the matter was set aside to the file of the Assessing Officer to pass fresh order. Thereafter, order u/s.144 r.w.s.263 read with section 144B of the Act was passed on 07.03.2022 against this order another appeal was filed on 31.12.2022, which is pending for adjudication on merits. 3. DECISION: Once an assessment order is revised by Commissioner of Income Tax/ Pr. Commissioner of Income Tax, the original order loses its existence, consequently no appeal can survive against such order. Therefore, the appeal against order u/s. 143(3) filed on 04.02.2020 is dismissed as not maintainable.” 3. It was brought to our notice that after the assessment order, action under Section 263 was taken and assessment was set aside by the CIT vide order dated 24.03.2021. The AO has given effect to this order and passed the assessment ITA No.404/CHD/2023 A.Y. 2015-16 3 order on 27.03.2022. The assessee is in appeal before CIT(A) against an assessment order dated 27.03.2022 passed under Section 144 read with Section 263 of the Income Tax Act. The ld. Counsel for the assessee has submitted that against the original assessment order dated 17.11.2017, assessee was aggrieved on account of denial of additional depreciation and that issue was pending before the CIT(A) which ought to have been adjudicated on merit but not adjudicated by the CIT(A) vide its order dated 08.05.2023. 4. We find that in case the CIT(A) in appeal against the assessment order dated 27.03.2022 finds that assessee is entitled for depreciation, then issue of additional depreciation would revived which assessee was agitating against the original assessment order. Therefore, ld. CIT(A) ought to have not dismissed appeal of the assessee simply by observing that it become redundant (extracted supra). He ought to have decided the issue legally and on merit, whether assessee is entitled for additional depreciation or not. The moment issue regarding depreciation is resolved, then relevancy of additional depreciation would have arisen. ITA No.404/CHD/2023 A.Y. 2015-16 4 Therefore, we deem it appropriate to set aside the finding of the CIT(A) and restore this issue to the file of AO. The ld. AO shall re-adjudicate the issue after the decision of the CIT(A) on an appeal filed against order dated 27.03.2022. We would appreciate that AO would apprise the CIT(A) for deciding the appeal on merit prior to expiry of the limitation for giving effect to the order of the ITAT. 5. In view of the above, appeal of the assessee is allowed for statistical purposes. Order pronounced on 08.04.2025. SD/- SD/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "