Chennai Co-op. Societies Employees Co-op. T & C Society Ltd Vs PCIT (ITAT Chennai)
When Reassessment is Non Est, 263 Revision Falls Too, Rules Tribunal- Sublato Fundamento Cadit Opus; PCIT’s 263 Order Quashed as Foundation Itself Void- JAO’s Invalid 148 Notice After 29.03.2022 Dooms Both Reassessment & Revision
Assessee, a cooperative society, appealed against the order of PCIT-8, Chennai dated 20.03.2025 passed u/s 263 for AY 2018-19. The key dispute revolved around whether PCIT could exercise revisional jurisdiction u/s 263 when the underlying reassessment order itself was invalid.
Assessee raised an additional ground citing the recent Madras High Court judgment in Mark Studio India Pvt. Ltd. (24.06.2025), which held that reassessment notices issued by the Jurisdictional Assessing Officer (JAO) instead of Faceless Assessing Officer (FAO) after 29.03.2022 were unlawful. Since in this case JAO had issued notice u/s 148 on 30.03.2022,reassessment order dated 09.03.2023 was argued to be a nullity. Therefore, PCIT could not revise such a void order.
Revenue contended that Assessee should have challenged reassessment separately & not in 263 proceedings. It also argued that PCIT rightly held that deduction u/s 80P of ₹1.48 crore was not allowable since Assessee had failed to file return u/s 139(1), & Section 80AC barred such deduction.
