ACIT Vs Linde Engineering Pvt. Ltd. (ITAT Ahmedabad)
Assessment Collapses Once Section 263 Revision Is Quashed — ITAT Dismisses Revenue Appeal
The Ahmedabad Bench of the Income Tax Appellate Tribunal held that once a revisionary order passed under section 263 is quashed, the consequential assessment framed under section 143(3) read with section 263 becomes void ab initio and non est in law.
In this case, the assessment for AY 2011-12 had been completed pursuant to a section 263 order. However, the Tribunal had already set aside that very section 263 order in earlier proceedings involving the same assessee. Relying on this undisputed fact, the ITAT observed that the assessment had no legal foundation to survive. Consequently, the appellate order of the CIT(A) and all issues arising therefrom, including the Revenue’s challenge to deletion of section 10A disallowance, ceased to exist for adjudication.
Accordingly, the Revenue’s appeal was dismissed, and the assessee’s cross-objection was also dismissed as infructuous, without entering into the merits of section 10A or transfer pricing provisions.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal by the Revenue and the Cross Objection by the assessee arise out of the order dated 20.08.2025 passed by the Ld. Commissioner of Income Tax (Appeals), Ahmedabad-13, [hereinafter referred to as “Ld. CIT(A)”] under section 250 of the Income tax Act, 1961 [“the Act”] for the Assessment Year (AY) 2011-12.
