Case Law Details
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.
3. We have heard the submissions made by ld. Counsel for the assessee and have perused the order of Coordinate Bench in ITA No. 758/Del/2023 for AY 2019- 20 (supra).
4. 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. We find the same very assessment order was subject matter of appeal before the Tribunal in appeal by the assessee in ITA No. 758/Del/2023 (supra). The assessee had challenged validity of the assessment order by raising following ground:-
“1. That on the facts and circumstances of the case and in law, the order passed by the Ld. Assessing Officer (hereinafter referred to as “Ld. AO”) under section 153A r.w.s 144C (13) of the Income Tax Act 1961 (“the Act”) dated 20.01.2023 is bad in law and on facts, void ab initio as the same has been passed in violation of section 144C of the Act.”
5. The Tribunal after considering facts of the case, relevant provisions of the Act and various case laws, concluded as under:-
“34. Considering the facts of the case in totality, in the light of the decisions discussed hereinabove, we have no hesitation to hold that the proceedings culminated on 31.03.2022 when the demand notice was issued and served upon the assessee along with penalty notice u/s 274 of the Act and, therefore, all the subsequent proceedings and orders become non est.”
6. 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.
7. In the result, appeal of the assessee is dismissed as having become infructuous.
Order pronounced in the open court on Tuesday the 19th day of November, 2024.
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