A revisional proceeding appeal being pending would not be a reason to keep the present appeal pending. – Gujarat High Court
TITLE Principal Commissioner of Income Tax 1 Versus Elecon EPC Projects Ltd
Decided On September 2, 2023
578 of 2023
CORAM: Hon’ble Justice Mr Biren Vaishnav
INTRODUCTION-
The common order dated 24.02.2023 passed in the relevant appeals by which the Revenue’s appeals are dismissed has been challenged by the Revenue under Section 260A of the Income Tax Act.
FACTS OF THE CASE
The assessee filed a return of income. On March 22, 2016, the assessment was finalised in accordance with Section 143(3) of the Act. The appellate authority provided relief following the assessee’s filing of an appeal. The Principal CIT-II in Vadodara issued an order setting aside the assessment order with a directive to verify the assessee’s claims after the revisional authority verified the records and found that the assessment orders were incorrect and detrimental to the interest of Revenue. On December 21, 2018, the Assessing Officer issued a new order of assessment under Section 143 r.w. Section 263 of the Act after verifying the information.
COURT ANALYSIS AND DECISION
The assessee successfully appealed that assessment order before the CIT(A). The assessee’s appeal before the ITAT in Ahmedabad, where revision proceedings under Section 263 of the Internal Revenue Code.
The order under Section 263 of the Act of 27.03.2018, the ensuing order of assessment under Section 143 r.w., and that the Act was being contested by the Tribunal, who did so in an order dated 13.07.2022. The Act’s Section 263 would no longer be valid. It would not be appropriate to keep this appeal pending if there was an appeal pending against the revisional proceedings. Even though the assessee requested that the Assessing Officer postpone the proceedings, the Assessing Officer went ahead and finalized the assessment. The Revenue did not ask to keep the appeal on hold or pending before the ITAT on the grounds, Court was already preoccupied with an appeal against the revision proceedings. In the absence of this, the Tribunal’s conclusion that the subsequent assessment order giving effect to the revision order is void ab initio once the Section 263 proceedings were set aside by themselves could not be faulted.
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Written by- Steffi Desousa