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| The Tax Publishers2020 TaxPub(DT) 0907 (Pat-HC) : (2020) 269 TAXMAN 0309 INCOME TAX ACT, 1961
Section 143(3)
Where High Court quashed assessment order passed in case of assessee with direction to make fresh assessment but on appeal, Supreme Court stayed High Court's order, fresh assessment order could not have been passed by AO, accordingly appeal of assessee was allowed.
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Assessment - - -
Assessees declared their income and paid tax for the relevant year after permissible exemptions. AO passed respective assessment orders under section 143(3) and separate demands were raised against them. Assessment orders in case of each of the assessees were challenged before High Court who allowed the writ petitions by quashing the respective assessment orders as the same were passed in violation of principle of natural justice. However, authorities challenged the common order passed by High Court before Supreme Court who stayed the operation of the order of High Court. The said appeal was still pending before the Supreme Court. Assessees challenged assessment orders on the ground that in view of interim order of stay passed by Supreme Court afresh assessment proceedings ought not to have been taken by AO. Held: The effect of the order of Supreme Court whereby order passed by High Court was stayed was that earlier assessment orders passed by AO for the assessment year 2015-16 were intact till the matter was finally decided by Supreme Court. Hence, there could not have been another assessment order for the assessment year 2015-16 in case of the assessees. Accordingly, respective assessment orders whereby demands have been raised against assessees were to be set aside.
REFERRED : Dhananjay Kumar Singh v. Asstt. CIT [CWJC No. 1391 of 2018, dt. 25-1-2018]: 2018 TaxPub(DT) 0547 (Pat-HC)
FAVOUR : In assessee's favour
A.Y. :
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