Appellate Tribunal quashes section 263 revision order due to pending appeal, citing judicial principles.

The Appellate Tribunal held that the revisionary order under section 263 was not valid due to a pending appeal before the CIT(A), following established judicial principles. Citing case law from the Hon'ble Madras High Court and Hon'ble Allahabad High Court, the Tribunal concluded that the revision lacked jurisdiction and ordered its quashing. Consequently, the appeal was allowed, and the revisionary order was set aside.

---

---

Issues involved:
The validity of revisional jurisdiction u/s. 263 exercised by Ld. Principal Commissioner of Income Tax against the assessment framed by Ld. Assessing Officer u/s. 143(3) of the Act.

1. Validity of Revisionary Order:
The appellant challenged the revisionary order on various grounds, including failure to consider explanations, passing the order while an appeal was pending, and misconstruing provisions of Explanation 2(a) to sec. 263. The Ld. AR argued that the doctrine of merger applied as the issues were already subject to adjudication before the first appellate authority. The Ld. CIT-DR contended that the revision was justified due to incorrect application of provisions by the Assessing Officer.

2. Assessment and Revisionary Proceedings:
The assessment was based on a survey, with additions made for discrepancies in stock and violation of Sec. 40A(3) for cash purchases of old jewellery. The Ld. Pr. CIT invoked revisionary jurisdiction based on unaccounted stock and disallowance u/s 40A(3). The appellant objected to the revision, citing a pending appeal before the first appellate authority.

3. Findings and Adjudication:
The Tribunal found that the revision u/s 263 was not valid as the appellant had appealed the issues before the CIT(A), invoking the bar on revisionary jurisdiction when an appeal is pending. Citing judgments from the Hon'ble Madras High Court and Hon'ble Allahabad High Court, the Tribunal concluded that the revision was without jurisdiction and ordered it to be quashed.

In conclusion, the Appellate Tribunal held that the revision u/s 263 was not valid due to the pending appeal before the CIT(A), following the principles established in judicial precedents. The appeal was allowed, and the revisionary order was quashed.

---