Yash Sugars Limited Vs PCIT (ITAT Pune)
No Surviving Prejudice After Fresh Assessment: ITAT Pune Dismisses s.263 Appeal as Infructuous
Pune ITAT ‘B’ Bench, in Yash Sugars Ltd. vs. PCIT (ITA No.1108/PUN/2024, AY 2014-15, order dated 23.12.2025), dismissed the assessee’s appeal as infructuous, in view of the consequential assessment resulting in nil demand.
The case arose from a revision order u/s 263 dated 18.03.2024, whereby the PCIT set aside the original assessment u/s 143(3) on the ground of lack of proper verification relating to differences in share capital and investments/unsecured loans. The assessee challenged the revision before the ITAT.
During the pendency of the appeal, the AO completed the consequential assessment u/s 143(3) r.w.s. 263 on 24.03.2025, wherein the returned nil income was accepted and no addition/demand was made. Before the Tribunal, the assessee contended that since the very prejudice alleged by the PCIT no longer survived, the appeal had become academic and infructuous. The Revenue could not controvert this factual position.
Accepting the submission, the ITAT held that once the consequential proceedings culminate in no tax demand, nothing survives for adjudication against the s.263 order. Accordingly, the appeal was dismissed as infructuous, without going into the merits of the revision.
FULL TEXT OF THE ORDER OF ITAT PUNE
