High Court rejects tax appeal due to jurisdiction issue in section 153C proceedings, upholding Tribunal's decision.

The High Court declined to entertain the tax appeal, as the original assessment order was held to be without jurisdiction when the subsequent section 153C proceedings were initiated. The Court noted the potential for double taxation if both the regular and block assessment orders were allowed to operate, leading to the deletion of the addition made under section 69 in the regular assessment order. The Tribunal's decision was upheld, emphasizing that the larger addition in the block assessment order should take precedence to avoid double taxation.

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Issues:
1. Jurisdiction of the Income Tax Appellate Tribunal in relation to the original assessment order under section 143(3) and section 153C proceedings.
2. Deletion of addition made under section 69 in the regular assessment order.

Analysis:
1. The case involved a challenge by the Revenue against the judgment of the Income Tax Appellate Tribunal, questioning the jurisdiction of the original assessment order passed under section 143(3) and its relation to the subsequent section 153C proceedings. The Tribunal held that the original assessment order would be rendered without jurisdiction when the order under section 153C was passed. The Revenue argued that since the regular assessment order was passed before the initiation of block assessment proceedings, there could be no abatement of pending proceedings. However, the Tribunal considered the fact that the addition made under section 69 in the regular assessment formed part of a larger addition made in the block assessment order, leading to potential double taxation if both orders were allowed to operate.

2. The second issue involved the deletion of an addition of Rs. 94.80 lakhs made under section 69 in the regular assessment order. The Commissioner of Income Tax (Appeals) had confirmed this addition, which was then challenged before the Tribunal. It was noted that in the block assessment proceedings, the income of the assessee was computed at Rs. 1.57 crores, and this order was not contested by the assessee. The Tribunal, considering the larger addition in the block assessment order, concluded that the additions made in the regular assessment order should give way to avoid double taxation. As the assessee had accepted the block assessment order, the Tribunal allowed the appeal and deleted the addition made under section 69.

In conclusion, the High Court disposed of the tax appeal, declining to entertain the question of law, given the specific circumstances of the case where the same income would be taxed twice if both the regular and block assessment orders were allowed to stand.

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