Nimmala Anjaiah, Hyderabad vs Assessee
- CitationITA No.946 of 2013 Nimmala Anjaiah Hyderabad
Ratio decidendi
The rule this decision rests on
Where a revisionary order under section 263 directs the Assessing Officer to revise an assessment order identified by a date that does not correspond to any order on the record, the order is defective and the Tribunal may set it aside and remit the matter to the Commissioner to verify the position and pass a fresh order after affording the assessee due opportunity of being heard. Where the Tribunal sets aside a revisionary order on such a jurisdictional or procedural defect, it need not examine the merits of the grounds raised, and the assessee remains free to raise all objections on merits before the Commissioner and, if necessary, before the appellate forums.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
This appeal is preferred by the assessee against the order of the CIT-III Hyderabad u/s 263, dated 20th March, 2013 relating to A.Y 2007-08.
2. The issue in this appeal is with reference to the order of the CIT u/s 263 directing the AO to revise the assessment order u/s 143(3) dated 8.12.2009. In this case assessee filed a return belatedly and to regularise the same, AO initiated proceedings u/s 147 and completed the assessment u/s 143(3) r.w.s. 147 on 20.12.2010 adopting certain values while computing the capital gains. The CIT was of the opinion that the order of the AO was erroneous and prejudicial to the interests of the Revenue. He directed the AO to modify the order adopting different values as worked out by him.
Page 1 of 3 ITA No.946 of 2013 Nimmala Anjaiah Hyderabad
3. Assessee is aggrieved and raised elaborate grounds.
4. At the outset, the ld Counsel submitted that the CIT has issued show cause notice asking the assessee why the order u/s 143(3) should not be revised. However, while passing the order u/s 263, the ld CIT (A), even though have mentioned in para 1 that the same has been completed u/s 143(3) r.w.s. 147 of the I.T. Act on 20.12.2010, in the cause title as in the last para of the order directed the AO to revise the assessment order u/s 143(3) dated 8.12.2009. Since such order is not in existence, the ld Counsel raised a preliminary objection about the jurisdiction of the order.
5. The ld DR however, while admitting that there is no order dated 8.12.2009, however submitted that it is only a typographic error and the orders are sought to be revised is only the order dated 20.12.2010.
6. We have considered the issue. We find that there are mistakes in the order of the CIT in as much as he has directed the AO to revise an assessment order u/s 143(3) dated 8.12.2009, whereas no such order was available on record. In view of this, we deem it fit to set aside the issue to the file of the CIT to verify the same and pass suitable order after giving due opportunity to the assessee.
7. Since, we set aside the order of the CIT, there is no need to decide on merits of the issues. Assessee is free to raise objections, if any, before the CIT and if required before the
Page 2 of 3 ITA No.946 of 2013 Nimmala Anjaiah Hyderabad
appellate forums on merits. Therefore, without going into the merits of the contentions raised in the grounds, we set aside the order of the CIT u/s 263 dated 20.03.2013.
8. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 17th June, 2015.
Sd/- Sd/- (B. Ramakotaiah) (Asha Vijayaraghavan) Accountant Member Judicial Member
Hyderabad, dated 17th June, 2015.
Vnodan/sps Copy to:
1. Shri S. Rama Rao, Advocate, Flat No.102, Shriya's Elegance, H.No.3-6643, St. No.9 Himayatnagar, Hyderabad 500029
2. Dy. Commissioner of Income Tax- Circle 6(1) Hyderabad
3. CIT -III Hyderabad
4. The DR, ITAT, Hyderabad
5. Guard File By Order
Page 3 of 3
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free