Tax Appeal Upheld: Original Assessment Reinstated, Subsequent Order Invalid

The Revenue's appeal against the Ld. CIT(A)'s decision to dismiss the appeal against the fresh assessment was ultimately unsuccessful. The Tribunal's decision to set aside the Ld. Pr. CIT's order under section 263 rendered the subsequent assessment proceedings invalid. Consequently, the original assessment order under section 143(3) was reinstated, and the subsequent order under sections 143(3)/263 was deemed non-existent and liable for cancellation. The Tribunal upheld the Ld. CIT(A)'s decision, leading to the dismissal of the Revenue's appeal.

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Issues:
1. Appeal against the order of Ld. CIT(A) dated 06.03.2019.
2. Validity of the assessment order passed by the AO u/s 143(3)/263.
3. Dismissal of the appeal by Ld. CIT(A) due to Tribunal's order dated 05.09.2018.
4. Appeal by Revenue against Ld. CIT(A)'s decision.

Analysis:
1. The appeal was filed by the Revenue against the order of Ld. CIT(A) dated 06.03.2019. The assessee, a company engaged in manufacturing, declared a loss and book profit for the year. The original assessment u/s 143(3) determined the loss and book profit. Subsequently, the assessment was set aside by Ld. Pr. CIT for fresh assessment on specific issues. The fresh assessment was completed with revised loss and book profit figures. An appeal was filed against this fresh assessment, which was dismissed by Ld. CIT(A) as infructuous due to a Tribunal order setting aside the earlier order by Ld. Pr. CIT u/s 263.

2. The validity of the assessment order passed by the AO u/s 143(3)/263 was challenged in the appeal. The Tribunal's order dated 05.09.2018 set aside the order passed by Ld. Pr. CIT u/s 263, rendering the subsequent proceedings, including the appeal against the fresh assessment, infructuous. The Ld. CIT(A) rightly held the appeal as infructuous, considering the nullity of the AO's order post the Tribunal's decision. The original assessment order passed by the AO u/s 143(3) was restored, and the subsequent order u/s 143(3)/263 was deemed non-est and liable to be cancelled.

3. The dismissal of the appeal by Ld. CIT(A) was based on the Tribunal's decision dated 05.09.2018, which set aside the Ld. Pr. CIT's order u/s 263. The Tribunal's decision rendered the proceedings arising from the fresh assessment infructuous. The Ld. CIT(A) correctly treated the appeal as infructuous in light of the Tribunal's order, leading to the dismissal of the Revenue's appeal.

4. The Revenue's appeal against Ld. CIT(A)'s decision was based on challenging the treatment of the appeal filed against the fresh assessment as infructuous. However, the Tribunal's decision on the Ld. Pr. CIT's order u/s 263 impacted the validity of the subsequent assessment order, leading to the dismissal of the Revenue's appeal. The Tribunal upheld the Ld. CIT(A)'s decision, resulting in the dismissal of the Revenue's appeal.

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