The Tax Publishers2020 TaxPub(DT) 3242 (Mum-Trib)

INCOME TAX ACT, 1961

Section 263

Once, revisional order passed by PCIT was set aside by the ITAT, then any consequential order passed by AO under section 143(3) read with section 263 did not survive, therefore, CIT(A) after considering relevant facts had rightly deleted additions made by AO and accordingly, appeal of Revenue was dismissed.

Revision under section 263 - PCIT set aside the assessment order with certain directions to AO - Tribunal reversed the order of PCIT -

Assessee was engaged in the business of manufacturing and trading of POY, Polyester chips and PTY. The case was selected for scrutiny and draft assessment order under section 144C(3) read with section 143(3) was passed. Assessee had filed objections against the draft assessment order before DRP. The final assessment order was passed under section 143(3) read with section 144C. Subsequently, PCIT under section 263 had invoked revisional jurisdiction under section 263 and had set aside the assessment order with certain directions. ITAT set aside order under section 263 passed by PCIT and restored the assessment order passed by AO. Meanwhile, AO passed order under section 143(3) read with section 263 and assessee challenged the order before CIT(A) who deleted the additions made by AO on the basis of directions of PCIT on the ground that once order under section 263 passed by PCIT was quashed, then the assessment order passed by AO no longer survives. Held: Department had fairly agreed that appeal filed by the revenue was not maintainable, because CIT(A) deleted additions made by AO on basis of 263 order passed by PCIT, but the under section 263 order passed by PCIT was set aside by ITAT. Once, revisional order passed by PCIT was set aside by the ITAT, then any consequential order passed by AO under section 143(3) read with section 263 did not survive. CIT(A) after considering relevant facts had rightly deleted additions made by AO, therefore dismissed the appeal filed by the revenue.

Followed:Malabar Industrial Co. Ltd. v. CIT (2000) 109 Taxman 66 (SC) : 2000 TaxPub(DT) 1227 (SC) CIT v. Ballarpur Industries Limited (2017) 85 taxmann.com 10 (Bombay) : 2017 TaxPub(DT) 4015 (Bom-HC) Gati Limited, Hyderabad v. Asst. CIT 2019 TaxPub(DT) 0902 (Hyd-Trib) M/s JBF Industries Ltd. v. PCIT 2018 TaxPub(DT) 7308 (Mum-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2011-12

IN THE ITAT, MUMBAI BENCH

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