ITAT Kolkata Allows Assessee's Appeal Against Revenue Order

The Appellate Tribunal ITAT Kolkata heard appeals by the Revenue against orders u/s 250 for AY 2014-2015 by the CIT(A). The appeals, delayed by 493 days due to COVID-19 restrictions, were allowed for adjudication. The Tribunal consolidated the appeals challenging the CIT(A)'s decision to set aside the PCIT's order u/s 263. The Tribunal found in favor of the assessee, holding that the original assessment proceedings under 143(3) became infructuous after the revision under 263 was quashed by the ITAT. Consequently, the Revenue's appeals were dismissed on 24th January 2023.

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Issues Involved:
Appeals by Revenue against orders u/s 250 for AY 2014-2015, condonation of delay, validity of CIT(A) order setting aside PCIT's order u/s 263, infructuous nature of assessment order u/s 143(3) r.w.s. 263, restoration of original assessment order by ITAT.

Analysis:
The Appellate Tribunal ITAT Kolkata heard appeals by the Revenue against separate orders passed u/s 250 for AY 2014-2015 by the CIT(A) dated 18.02.2021. The appeals were time-barred by 493 days, but the delay was condoned due to reasonable cause (COVID-19 restrictions), allowing the appeals for adjudication. The Revenue raised common grounds challenging the CIT(A)'s decision to set aside the PCIT's order u/s 263. The Tribunal consolidated the appeals due to common issues and identical facts for convenience.

The assessee argued that the CIT(A)'s order was not operative as the revisionary proceedings u/s 263 were quashed by the ITAT, rendering subsequent proceedings infructuous. The Tribunal found that the CIT(A) rightly allowed the assessee's appeal as the original assessment proceedings under 143(3) were subject to revision under 263, which was subsequently quashed by the ITAT. Consequently, the order u/s 143(3) r.w.s. 263 became infructuous, leading to the dismissal of the Revenue's appeals.

The CIT(A) allowed the assessee's appeal based on the ITAT's decision to restore the original assessment order and quash the revisionary proceedings. The Tribunal upheld the CIT(A)'s decision, stating that all proceedings post-revision under 263 had become infructuous. As a result, the Revenue's appeals were dismissed on 24th January 2023.

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