Dr. Om Prakash Vs ACIT (ITAT Delhi)
Once Appeal withdrawn & Revision allowed u/s 264, CIT(A) has no jurisdiction – Revision u/s 264 prevails after appeal withdrawal – CIT(A) Order Invalid– ITAT Delhi
Delhi ITAT has held that once an assessment order is revised u/s 264 by PCIT, the said revision order becomes operative & the pending appeal before CIT(A) automatically becomes infructuous. Tribunal further observed that CIT(A) has no authority in law to sit in judgment over the validity of a revision order passed by PCIT.
Assessee, a medical practitioner, had filed his return declaring income of ₹16.16 lakh. AO completed assessment u/s 143(3) determining income by making two additions of ₹16.45 lakh & ₹72.15 lakh. Aggrieved, Assessee filed appeal before CIT(A). However, during pendency of the appeal, Assessee opted to pursue the alternative remedy of revision & accordingly filed a petition u/s 264 before PCIT.
On 14.03.2017, PCIT passed a revision order deleting both disputed additions. The said order was accepted by the Dept, as the AO also passed effect order on 25.08.2017 giving effect to the revision. In these circumstances, the appeal pending before CIT(A) had lost relevance, since the original assessment order had merged with the revision order.
