Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 680 - AT - Income TaxRevision u/s 263 - whether the Ld. CIT(A) is correct in holding that the appeal filed against the assessment order passed under section 143(3) read with section 153C of the Act is infructuous or not? - Held that:- A.O. has interpreted the direction of the Pr. CIT as though it was to examine only the cash payment of ₹ 9,24,100 towards interest instead of making the assessment afresh. Accordingly, the A.O. has passed the consequential order on 30.06.2016. It is clear from the language used by the Pr. CIT i.e., “in the absence of such examination by the A.O., the assessment order so framed by the A.O. is not only erroneous but also prejudicial to the interests of the Revenue. Accordingly, the assessment order passed for A.Y. 2008-09 is set aside with a direction to the A.O. to re-do the same afresh, after examining the details of interest payment of ₹ 9,24,100 and after providing an opportunity of being heard to the assessee”. From the above directions of the Pr. CIT, it is clear that the direction to A.O was to re-do the assessment afresh after considering the fresh findings of the Pr. CIT. In our considered view, the A.O has misunderstood the direction of the Pr. CIT and passed the consequential order after considering only the cash payment towards interest. A.O should have passed the consequential order afresh. If the intention of Pr. CIT is to re-do the assessment considering only the interest, he would have directed accordingly and not by using the expression ‘afresh’. Pr. CIT has already set aside the assessment order passed under section 143(3) read with section 153C. Technically the order under section 143(3) r.w.s. 153C is non-existent. CIT(A) has rightly concluded that it is infructuous and cannot be adjudicated. The assessee has to take an appropriate remedy against the order of the A.O. under section 143(3) r.w.s. 263 but he cannot proceed to file an appeal on the order which is non-existent. In our view, the assessee will be in a better footing if he prefers an appeal against the order of the A.O. passed under section 143(3) r.w.s. 263. - Decided against assessee.
|