Second assessment order deemed null and void for procedural non-compliance. Revenue's appeal dismissed, order quashed.

The Tribunal found the second assessment order null and void as it did not comply with procedural requirements. The Revenue's appeal was dismissed, and the second assessment order was quashed, emphasizing the necessity of adherence to legal provisions in income tax assessments.

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Issues involved:
The judgment involves issues related to the assessment order passed under section 147 read with section 143(3) of the Income Tax Act, 1951 for the assessment year 2009-10. The key issues include the treatment of the transfer of developmental rights under sections 28 and 50C of the Act, consideration of the transfer of development right to the Joint Venture (JV) as a business transaction, and the validity of the assessment order passed by the Assessing Officer (AO).

Issue I: Treatment of Transfer under Sections 28 and 50C
The Revenue challenged the order of the Commissioner of Income Tax (Appeals) (CIT(A)) regarding the treatment of the transfer of developmental rights. The Revenue contended that the addition made by the AO was under section 28, while the CIT(A) held it was under section 50C. The Tribunal found that the AO had passed two assessment orders based on the same reassessment notice, and the income of the assessee was not based on the valuation report of the Departmental Valuation Officer (DVO) as required by section 142A(7) of the Act. The Tribunal concluded that the second assessment order was null and void as it did not comply with the provisions of the Act.

Issue II: Transfer of Development Rights to JV
The CIT(A) erred in not considering the transfer of development rights to the JV as a business transaction, despite the assessee's submission that it was in the business of development rights. The Tribunal noted that the second assessment order reassessed the income that was already a subject matter of appeal before the CIT(A), contravening the provisions of the Act. Citing a ruling by the jurisdictional High Court, the Tribunal held that the power to re-open an assessment cannot be used to re-open issues subject to appeal. Consequently, the Tribunal declared the second assessment order as null and void ab-initio.

Issue III: Validity of Assessment Order
The Tribunal found that the AO passing multiple assessment orders on the same reassessment notice without awaiting the DVO report was incorrect. The second assessment order was deemed null and void for reassessing income already under appeal before the CIT(A). The Tribunal upheld the CIT(A)'s decision that the second assessment order was contrary to the provisions of the Act. As a result, the appeal by the Revenue was dismissed, and the second assessment order was quashed.

This judgment highlights the importance of following procedural requirements and legal provisions in conducting assessments under the Income Tax Act to ensure fairness and compliance with the law.

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