U.P Rajya Vidyut Utpadan Nigam Limited Vs DCIT (ITAT Lucknow)
ITAT Lucknow Holds Original Assessment Revives Once Section 263 Order Is Set Aside; Appeals Remanded / Rendered Infructuous Accordingly
The Lucknow Bench of the ITAT disposed of a batch of cross-appeals involving U.P. Rajya Vidyut Utpadan Nigam Ltd. for AY 2012-13, arising from (i) the original assessment u/s 143(3) and (ii) a consequential assessment passed pursuant to a PCIT’s revision order u/s 263.
The Tribunal noted that the PCIT’s order under section 263 had already been set aside by the ITAT in earlier proceedings. As a natural corollary, the original assessment order stood revived and came back into existence. Consequently, the CIT(A) was held to be incorrect in treating the assessee’s appeal against the original assessment as infructuous merely because a 263 order had earlier been passed. The ITAT therefore set aside the CIT(A)’s order and restored the matter to the CIT(A) for adjudication on merits in respect of issues such as section 14A disallowance, MAT computation u/s 115JB, depreciation, and TDS credit.
At the same time, the Tribunal held that since the 263 order itself no longer survived, the assessment framed in pursuance of section 263 automatically became non-est, rendering the cross-appeals filed by both the assessee and the Revenue against such consequential assessment infructuous. Accordingly, those appeals were dismissed as infructuous.
In effect, the ITAT clarified the settled legal position that setting aside a section 263 order revives the original assessment, and appellate proceedings must thereafter continue on merits of the original order, not be dismissed as infructuous
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
