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2022 (7) TMI 936 - AT - Income TaxRevision u/s 263 - validity of assessment as completed u/s 143 read with section 153A - HELD THAT:- We find that assessment order dated 30.3.2016 passed u/s.153A is confined only to the Returned Income, in other words, original assessment order is reiterated. As against this assessment order, the Ld. Pr. CIT could not initiate revision proceedings under section 263 of the Act on the ground that order passed by the AO is erroneous and prejudicial to the interest of the Revenue since the basic assessment itself is invalid in law. As we find that assessment order dated 30.3.2016 passed u/s. 153A is confined only to the Returned Income, in other words, original assessment order is reiterated. As against this assessment order, the Ld. Pr. CIT could not initiate revision proceedings under section 263 of the Act on the ground that order passed by the AO is erroneous and prejudicial to the interest of the Revenue since the basic assessment itself is invalid in law. Thus we hold that the Revision Order passed as against the invalid assessment order is nullity in law. Revision proceeding based on the Internal Audit Party report - As it is settled Principle of law by the Three Judges Bench judgment of the Hon'ble Supreme Court in the case of Sirpur Paper Mill Ltd. [1970 (4) TMI 4 - SUPREME COURT] that revision made by the Commissioner simply following direction of the Board, which may control exercise of power of officers of department in administrative matters, but not in quasi-judicial matters. In case of judicial matters, the Commissioner should apply his mind and initiate proceedings in accordance with law and not merely carry out directions of the Board. Thus, any order passed pursuant to the directions of the Board is liable to be set aside as Commissioner has not applied his independent judgments in invoking revision proceedings. Respectfully following the above judgments of jurisdictional High Court and judgment of Hon'ble Supreme Court cited (supra) we hold that revision order passed by the Pr. CIT [Central] for the asst. year 2009-10 is not in accordance with law and the same is hereby quashed. We further found the Explanation (2)(a) to section 263(1) of the Act has been inserted w.e.f. 01-06-2015 only. The Ld. Pr. CIT is legally not correct in invoking this provision and therefore the initiation of Revision Proceedings itself is invalid in law. For all the above reasons, we find that Revision Order passed by the Pr. CIT is not in accordance with law, and therefore, the same is hereby quashed. Cash on sale of land - Receipt by assessee as legal heir - Asst. Year 2008-09 - As on the date of execution of the sale deed, Smt. Shushilaben H. Thakkar was not alive. Therefore, the said amount of Rs. 24,46,500/- received by the assessee, on behalf of his wife can only be taxed in the hands of the assessee in his capacity as "legal heir". It cannot be taxed in the hands of the assessee in his "individual" capacity. Both the status provided in the section 2(31) of the Act are distinct and separate. Therefore, the Ld. DCIT submitted that objection raised by the audit party was not acceptable. The income of "legal heir" cannot be assessed in the hands of individual and hence requested to drop Audit Objection. In the same line, Ld. JCIT vide his letter dated 14.3.2018 submitted before the Ld. Pr. CIT(Central) to drop further proceedings. However, as it can be seen from the show cause notice, for the very same reason, Pr. CIT has invoked revision proceedings without applying his mind, but borrowed reasons from Revenue Audit Party, which is bad in law. Thus the Ld. Pr. CIT erred in invoking proceedings under section 263 with barrowed reasons which is against the provision of law and liable to be quashed. Assessee appeal allowed.
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