Revenue's Appeal Dismissed, Fresh Order Directed in Income Tax Case

The appeal by the Revenue challenging the quashing of an assessment order under the I.T. Act, 1961 was dismissed. The High Court directed the CIT to issue a fresh order after hearing the assessee, setting aside the matter for a new decision. The assessment order from 2010 was invalidated as it relied on a previous order that had been quashed. The CIT's decision to annul the 2010 assessment order was upheld, allowing the Assessing Officer to issue a new assessment order in compliance with the law.

---

---

Issues involved: Appeal against order quashing assessment order passed u/s 263/143(3) of the I.T. Act, 1961.

Summary:
The appeal by the Revenue challenged the order of the learned CIT(A)-XIII, New Delhi dated 16th November, 2011, which quashed the assessment order passed by the Assessing Officer u/s 263/143(3) of the I.T. Act, 1961. The ITAT in ITA No.678/Del/2010 had previously quashed the order passed u/s 263, leading to the CIT(A) quashing the subsequent assessment order dated 28.12.2010. The Revenue appealed this decision.

The Hon'ble Jurisdictional High Court, in ITA No.973/2011, directed the CIT to pass a fresh order u/s 263 after hearing the assessee. The High Court modified the ITAT's decision and set aside the matter back to the CIT for a fresh order u/s 263. As a result, the assessment order dated 28.12.2010 could not survive without the original order u/s 263 dated 31.12.2009. The learned CIT(A) was deemed justified in quashing the assessment order dated 28.12.2010. The Assessing Officer was given the liberty to pass a fresh assessment order in accordance with the law.

Ultimately, the appeal of the Revenue was dismissed, and the decision was pronounced in the open Court on 17th April, 2012.

---