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2016 (2) TMI 44 - HC - Income TaxRevision u/s 263 - Whether Hon’ble Tribunal was right in law in quashing the order of the Commissioner of Income Tax under Section 263 of the Act which is as per law as the provisions of Section 14A are applicable to the total income under the Income tax Act and the fact whether the income of the assessee is computed as per Section 11 or not is of no relevance? - Held that:- The undisputed facts are that the assessment order under Section 143(3) of the Act was passéd by the Assessing Officer on 27.12.2009, subsequent to the registration under Section 12AA of the Act, granted to the assessee on 27.07.2009 with effect from 01.04.2003. The revision filed by the assessee under Section 264 of the Act was allowed accepting the claim of the assessee and the matter was remanded to the Assessing Officer to compute the income of the assessee in terms of the order of revision under Section 264 of the Act. The said order was given effect to by the Assessing Officer vide order dated 27.05.2011. Thus, it is clear that the order dated 27.12.2009 passed by the Assessing Officer is no longer in existence. CIT exercising the powers under Section 263 of the Act revised the non-existing order dated 27.12.2009, the Tribunal having considered this factual position arrived at a conclusion that CIT had no jurisdiction to revise the order which was not in existence. The order passed by the CIT, revising the non-existing order is void ab-initio and is a nullity in the eye of law. As such, the Tribunal setting aside the said void order passed under Section 263 of the Act, cannot be found fault with. It is pertinent to note that the computation of the income of the assessee has been done in accordance with Chapter III of the Act, the second question of law arises on the points urged in the cross-objection filed by the revenue before the Tribunal, which has been rejected. In the present case, the revenue has filed cross objections under Section 253(4) of the Act raising the points involved in second question of law now raised, in an appeal preferred by the assesee against the order of the revisional authority exercising the powers under Section 263 of the Act. No such cross objections are maintainable in an appeal filed against the order of revision in terms of Section 253(4) of the Act. Given the circumstances, the Tribunal rejecting the cross objections filed by the revenue as not maintainable is justifiable. - Decided in favour of the assessee
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