2025 (8) TMI 1583 - AT - Income Tax

Revenue appeal dismissed as infructuous after assessment under s.143(3) r.w.s.263 quashed, revisional assessment dismissed; recall option preserved

ITAT Delhi - AT dismissed the Revenue's appeal as infructuous because the assessment order under s.143(3) r.w.s.263 was quashed by the CIT(A) in revision; ... Validity of Revision u/s 263 - HELD THAT:- In view of the ITAT order [2023 (11) TMI 1384 - ITAT DELHI] in revisional proceedings, the present appeal of the Revenue from the assessment order in consequences of revisional proceedings is infructuous and thus requires to be dismissed in limine. The assessment order passed under s.143(3) r.w.s. 263 of the Act has been rightly quashed by the CIT(A). We see no error in the first appellate order under challenge by the Revenue. Revenue shall be at liberty to seek recall of this order, if the circumstances so warrant. Appeals by the Revenue challenge the Commissioner (Appeals) order dated 12.07.2024 disposing of assessment proceedings arising from an assessment order passed under s. 143(3) r.w.s. 263 of the Income Tax Act, 1961 for AY 2013-14. The Tribunal noted that a Coordinate Bench had earlier quashed the revisional order passed under s. 263 (ITA No.6816/Del/2019) for the same assessment year, and the CIT(A) reversed additions made pursuant to that revisional order. The Revenue conceded the factual position but informed the Tribunal that an appeal to the High Court has been admitted against the ITAT's order quashing the s. 263 revisional order. The Tribunal found no error in the CIT(A) decision and held the Revenue's appeal 'dismissed', observing that the appeal arising from the assessment in consequence of the revisional order was 'infructuous'. The Tribunal added: 'The Revenue shall be at liberty to seek recall of this order, if the circumstances so warrant.' A duplicate Revenue appeal was dismissed in limine.