TaxTMI 
TaxTMI 
2026 (9) TMI 490
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...."Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deciding the facts on merits of the case, since the loss claimed by assessee in return for AY 2015-16 on account of change of scope of work of Rs. 7,65,98,377/- is an expense in the nature of capital expenditure and therefore it should be added to the income of the assessee?" 2. At the outset, we find that the impugned assessment order was framed under section 143(3) read with section 263 of the Income-tax Act, 1961 ("the Act"), pursuant to the order dated 17.02.2020 passed by the learned Principal Commissioner of Income-tax-1, Bhopal under section 263 of the Act. Significantly, the very same order under section 263, in the case of the asse....
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....tiating the impugned order. Therefore, we quash the impugned order on legality aspect itself and restore the original assessment-order passed by AO. Since we have quashed the revision order, the pleadings made by both sides on merits are not required to be dealt." 3. It is thus evident that the order under section 263, which constituted the jurisdictional foundation for framing the impugned consequential assessment, no longer survives. The learned CIT(A), taking note of the aforesaid decision of the Coordinate Bench, held that once the revisional order under section 263 had been quashed, the consequential assessment framed pursuant thereto could not independently survive. He accordingly deleted the addition of Rs. 7,65,98,377/- without e....
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....he impugned reassessment proceedings. Once the 263 order is quashed, all consequential actions taken in pursuance thereof-including the reassessment order now under appeal-automatically lose legal force. 8.3 In view of this binding judicial pronouncement, the present assessment order cannot survive independently. The law is well-settled that where the basis of an assessment is annulled, the superstructure built upon it collapses. Further, the Hon'ble ITAT has categorically quashed the 263 order-the very foundation upon which this reassessment order rests-holding that the revision lacked jurisdiction and legal validity. The assessment under appeal is therefore void ab initio. The original assessment u/s 143(3) having been restored b....
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....nts made by Ld. AR not the applicability of the decision of ITAT, Pune on facts or in law. Therefore, respectfully following the said decision, we are inclined to hold that the present case is having a jurisdictional deficit resulting into vitiating the impugned order. Therefore, we quash the impugned order on legality aspect itself and restore the original assessment-order passed by AO. Since we have quashed the revision order, the pleadings made by both sides on merits are not required to be dealt". 8.4 In light of the detailed submissions of the appellant, the contractual evidence on record, and the binding judicial pronouncement of the Hon'ble ITAT, I hold that the disallowance of Rs. 7,65,98,377/- made by the Assessing Officer....