2010 (1) TMI 1197 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against order by Commissioner u/s 263 for assessment year 2001-2002.

The judgment by the Appellate Tribunal ITAT Mumbai pertains to an appeal by the Revenue against the order passed by the Commissioner of Income-tax (Appeals) for the assessment year 2001-2002. The original assessment was made u/s.143(3), following which the Commissioner u/s.263 directed further investigations. The Assessing Officer then framed the assessment order u/s.143(3) r.w.s. 263, determining the total income at Rs. 13.47 crores, as opposed to the original income of Rs. 26.37 crores. The Tribunal, in ITA No.2877/Mum/2006, quashed the order passed by the Commissioner u/s.263. The Commissioner, in the impugned order, set aside the assessment, allowing the assessee's appeal.

Upon reviewing the submissions and relevant material, it was established that the assessment order was passed based on the direction of the Commissioner u/s.263. As the foundation of the assessment proceedings, the revisional order u/s.263, no longer existed, the Tribunal upheld the decision to quash the assessment order. Consequently, the appeal was dismissed.

The judgment was pronounced on January 11, 2010.