Defsys Solutions P. Ltd. Vs PCIT (ITAT Delhi)
ITAT Delhi held that revisionary proceedings under section 263 of the Income Tax Act would not survive since the assessment order is held to be non-est. Thus, appeal dismissed as having become infructuous.
Facts- The assessee in instant appeal has assailed the order of PCIT dated 28.02.2024 passed u/s. 263 of the Act. The PCIT has exercised revisional powers in respect of Final Assessment Order passed u/s. 153A r.w.s 144C(13) of the Act dated 20.01.2023 for AY 2019-20 in the case of assessee.
Conclusion- Held that once the assessment order has been held to be non est, the substratum for exercising revisionary jurisdiction is eroded, hence, the revision proceedings u/s. 263 of the Act against the said order would not survive. Thus, appeal of the assessee assailing proceedings u/s. 263 of the Act becomes infructuous.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is directed against the order of Principal Commissioner of Income Tax (Central), Delhi-2 (hereinafter referred to as ‘the PCIT’) dated 28.02.2024, for assessment year 2019-20, passed u/s. 263 of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’).
2. Shri Ajay Wadhwa, appearing on behalf of the assessee submitted at the outset that assessment order against which the PCIT has invoked revisionary powers has been held to be non est by the Tribunal vide order dated 28.03.2024 in appeal by the assessee in ITA No. 758/Del/2023. Once the assessment order is held to be non est, the subsequent proceedings arising therefrom are vitiated.
