ACIT Vs S.S. Con-Build Pvt Ltd (ITAT Delhi)
The sale issue before the ITAT Delhi is whether assessment framed in second round (After remand back to AO by ITAT) under section 153A without getting approval under section 153D of Act, is sustainable in law or not. ITAT decided the issue in favor of assessee.
Before CIT (A) revenue submitted that the approval u/s. 153D is not required as assessment proceedings had not been set aside or annulled and the Hon’ble ITAT had given a time period of 120 days with specific directions to verify certain matters and the assessment had not been set aside to be framed de-novo. The provisions of section 153D were applicable when assessment was framed for the first time or reassessment. Assessee argued that order of the Hon’ble ITAT dated 31.03.2014 (in first round) to contend that assessment under appeal had been set aside to the file of the AO which meant that a fresh assessment had to be framed.
CIT (A) observed that that in consequence of the order of the Hon’ble ITAT (in first round), the demand against the assessee, as confirmed by CIT (A) had been reduced to Nil in the demand and collection register of the AO. This means that the original order passed by the AO was set aside. CIT (A) held that it is unacceptable that the order under consideration passed by the AO (in second round) was meant to give an appeal effect and was not in the category of assessment or reassessment. This being so, the mandatory requirement to take approval u/s 153D could not be dispensed with.
