TMI Blog2021 (10) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... s wholly unsustainable in law and thusan ab initio void order cannot be subject to revision under s. 263 HELD THAT:- The normal provisions of assessment under s. 143(3) of the Act would not apply in the case where action has been taken either under s. 132 of the Act or under s. 132A of the Act. The assessment, however, has been wrongly framed with the aid of Section 143(3) under the normal provisions of the Act. The assessment made under s. 143(3) of the Act in pursuance of requisition under s. 132A of the Act is grossly opposed to the very scheme of the Act and such assessment is wholly unsustainable in law. We find considerable substance in the plea of the assessee. The order which is a nullity in law and has no legal effect, cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the revisional order passed by the PCIT under s. 263 of the Act. 3. Briefly stated in the assessee's case, in the wake of the Municipal Elections in the various parts of Vidarbha, the District Administration of various districts had formed Static Surveillance Teams (SST) as well as Flying Squads to check the movement of cash, liquor etc. The assistance of the IT Department was also sought by the state Election Commission wherein the designated ITOs were appointed as the verification Officers. The ITO, Ward-1, Gondia who was the designated verification Officers for Gondia District for the municipal elections, was informed by the Resident Deputy District Collector, Gondia vide letter dated 15.11.2016 that a cash of ₹ 20.00 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Commissioner, Raipur (PCIT). The PCIT observed that impugned assessment order is erroneous in so far as it is prejudicial to the interest of the Revenue. A show cause notice was issued to the assessee seeking to tax the surrender of ₹ 20 Lakhs @ provided under s. 115BBE of the Act. The revisional order was consequently passed whereby the AO was directed to make adequate enquiries for issues raised in the revisional order. 6. Aggrieved by the revisional order, the assessee preferred appeal before the Tribunal. 7. When the matter was called for hearing, the learned counsel for the assessee, at the outset, raised additional ground under Rule 11 of the Income Tax Appellate Tribunal Rules, the copy of which was placed on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO. Consequently, invocation of Section 263 of the Act to improvise such non est order is also an act of nullity. The learned counsel, thus, submitted that the revisional order under s. 263 of the Act is required to be quashed on the ground alone. It was secondly contended that without prejudice to the first plea, the assessment under s. 153A of the Act is required to be completed within 2 years from the end of the financial year in which the requisition was made in view of the limitation placed under s. 153B of the Act. In the context, it was submitted that the assessment order was firstly framed wrongly under s. 143(3) of the Act as submitted above and secondly, the assessment was framed on 28.12.2019 as against the day of conclusion of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of requisition under s. 132A of the Act is grossly opposed to the very scheme of the Act and such assessment is wholly unsustainable in law. The assessee contends that an ab initio void order cannot be subject to revision under s. 263 of the Act. To support the plea, a reference was made to the decision in CIT vs. Kalyan Solvent Extraction Ltd. (2005) 276 ITR 154 (MP) and M/s. Supersonic Technologies Pvt. Ltd. vs. PCIT ITA No. 2269/Del/2017 order dated 10.12.2018. 8. We find considerable substance in the plea of the assessee. The order which is a nullity in law and has no legal effect, cannot be revised under s. 263 of the Act. The assessment order being infructuous in law, the consequential action under s. 263 of the Act is equally inf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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