2015 (6) TMI 1282 - AT - Income Tax

Appeal Against Section 263 Revision Held Infructuous After Search Under Section 132(1) and Assessment u/s 153A

ITAT Delhi-AT dealt with an assessee's appeal challenging a revisional order u/s 263. During pendency of the appeal, no fresh assessment was passed by the ... Challenged the revisional order passed u/s 263 - Assessee moved an application by submitting that the present appeal filed by the assessee has become infructuous as the AO has not passed fresh assessment order in pursuance to CIT’s order u/s 263. Instead, on account of a search u/s 132(1) of the Act, proceedings u/s 153 were taken against the assessee and a fresh order u/s 153A for A.Y. 2006-07 has been passed on 13-3-2015. HELD THAT:- Ld. DR raised no objection to the request so made on behalf of the assessee. Thus, assessee’s appeal is dismissed being infructuous. Assessee appealed against a revisional order passed under section 263 of the Income-tax Act, 1961, whereby the Commissioner set aside the assessment order dated 24-12-2009 passed under section 143(3) for A.Y. 2006-07 for fresh assessment. Grounds included that the original assessment was neither 'erroneous nor prejudicial to the interests of the Revenue' regarding purchase of new shares from alleged conversion of preference shares, verification of additions to assets, applicability of section 40A(2)(b), and fall in gross profit rate, and that the Commissioner had relied on incorrect or irrelevant facts. At hearing, assessee stated the appeal had become infructuous since no fresh order was passed pursuant to section 263; instead, a search under section 132(1) led to proceedings under section 153A and a fresh assessment order dated 13-3-2015, against which a regular appeal is pending. Revenue raised no objection. The appeal was dismissed as infructuous.