Reliance Projects And Property Management Services Limited Vs PCIT (ITAT Ahmedabad)
Nullity Cannot Be Revised: When Assessment Itself Is Dead, Section 263 Cannot Revive It- IBC Resolution Plan Prevails: PCIT’s 263 Order Falls as Base Assessment Is Quashed by HC
Assessee challenged two revision orders u/s 263 passed by PCIT for AYs 2018-19 & 2019-20. For AY 2019-20, assessment u/s 143(3) was completed on 28.09.2021 allowing depreciation on passive telecom infrastructure assets at fair value. PCIT held that depreciation ought to have been restricted to WDV of transferor company (RITL/RCOM group) & treated the assessment order as erroneous & prejudicial, directing the AO to reframe assessment & disallow excess depreciation. Assessee submitted that RITL had been acquired under a resolution plan approved by NCLT on 03.12.2020, with effective date 22.12.2020. All pre-effective-date tax dues stood treated as NIL under the plan. The assessment order was nevertheless passed later on 28.09.2021. Assessee had already challenged the assessment before the Bombay High Court. Tribunal took note of the Bombay High Court’s order dated 14.10.2025, wherein the assessment order itself was quashed on the ground that tax liability for the relevant period stood extinguished under the IBC-approved resolution plan.
Tribunal held that once the assessment order has been quashed by the High Court, the superstructure of revision under section 263 automatically collapses, since a non-existent order cannot be revised. The 263 order dated 29.03.2024 for AY 2019-20 was therefore quashed. For AY 2018-19, facts being identical, the assessment dated 22.04.2021 had also been quashed by Bombay High Court on 06.10.2025; consequently, PCIT’s 263 order dated 28.03.2024 for that year also does not survive. Tribunal allowed both appeals.
