Federal Bank Ltd Vs ACIT (ITAT Cochin)
The Income Tax Appellate Tribunal (ITAT) Cochin addressed an appeal brought by Federal Bank Ltd against an order issued by the Principal Commissioner of Income Tax – I, Kochi (PCIT), pertaining to Assessment Year (AY) 2018-19. The core issue stemmed from a revision order passed by the PCIT, which Federal Bank challenged. During the hearing, it was brought to the tribunal’s attention that the Hon’ble High Court, in Writ Petition 10803 of 2021, had issued an order dated 22.11.2024. This High Court order had specifically set aside the original assessment order related to the disputed AY. Furthermore, the High Court directed that a fresh assessment order be passed, adhering to legal provisions and ensuring that Federal Bank was provided with an adequate opportunity to be heard.
Given that the original assessment order, upon which the PCIT’s revisionary powers were exercised, was no longer valid due to the High Court’s intervention, the ITAT concluded that the PCIT’s revision order was legally non-existent (non est). Consequently, the ITAT determined that Federal Bank’s appeal was not maintainable. The tribunal’s decision was based on the premise that an appeal against a revision order cannot stand when the underlying assessment order has been nullified by a higher judicial authority. The ITAT proceeded to dismiss the appeal, acknowledging the overriding effect of the High Court’s directive. This ruling, pronounced in open court on February 19, 2025, effectively concluded the appeal process for Federal Bank, reflecting the legal precedence of High Court orders in tax assessment matters.
