DCIT Vs Rashmin Mohanlal Majithia (ITAT Ahmedabad)
Superstructure Falls With Foundation: No Legs to Stand On: When 263 Is Quashed, Consequential Assessment Dies:
The Ahmedabad Bench “A” of the ITAT, vide order dated 31.12.2025, in DCIT v. Rashmin Mohanlal Majithia (ITA No. 1841/Ahd/2025, AY 2015-16), dismissed the Revenue’s appeal as infructuous, holding that once the revisionary order u/s 263 itself stands quashed, all consequential proceedings automatically collapse.
The Revenue had challenged the order of the CIT(A)/NFAC dated 07.07.2025, which deleted additions made by the AO in an assessment framed u/s 143(3) r.w.s. 263 pursuant to a revision order dated 21.02.2020 passed by the PCIT.
Before the Tribunal, the assessee pointed out that the very foundation of the consequential assessment—the PCIT’s revision order u/s 263—had already been quashed by a co-ordinate Ahmedabad Bench in ITA No. 299/Ahd/2020 dated 17.06.2022. Once the 263 order was set aside, the consequential assessment passed to give effect to that order, and any appellate proceedings arising therefrom, became non est and unenforceable.
Accepting this position, the ITAT held that the Revenue’s appeal against an order arising out of an inoperative assessment was not maintainable. Accordingly, the appeal was dismissed without entering into the merits of the additions.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 07/07/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2015-2016.
