2025 (7) TMI 241 - AT - Income Tax

Revision u/s 263 - pursuant to the impugned order passed u/s 263 a consequential assessment order has already been passed by the AO - HELD THAT - Since the consequential assessment order has already been passed in compliance with the directions contained in the order under section 263 and no disallowance or adverse inference has been drawn by the AO the grievance sought to be raised by the assessee in the present appeal stands rendered infructuous. Accordingly the request of the assessee to withdraw the appeal is allowed. Appeal filed by the assessee is dismissed as withdrawn.

Summary

The Appellate Tribunal (ITAT Ahmedabad) disposed of the assessee's appeal against the PCIT's order under section 263 of the Income-tax Act, 1961, relating to AY 2016-17. The PCIT had set aside the reassessment order under sections 147 r.w.s. 144B to direct verification of the deduction claimed under section 35(2AB) for development costs amounting to Rs. 1,52,09,430/-. The assessee's Authorized Representative submitted that the Assessing Officer, in the consequential assessment order, had accepted the deduction after verification, taking "no adverse view." The Departmental Representative raised no objection to the withdrawal. The Tribunal held that since the issue was effectively resolved by the Assessing Officer's order complying with the section 263 directions and no adverse inference was drawn, the appeal was rendered "infructuous." Accordingly, the appeal was dismissed as withdrawn.