Overview of ITA No.948/DEL/2022 Judgment: Anuj Bansal vs Pr CIT, New Delhi

Overview of ITA No.948/DEL/2022 Judgment: Anuj Bansal vs Pr CIT, New Delhi

In the Income Tax Appellate Tribunal Delhi Bench ‘A’, a significant judgment was delivered concerning the case number ITA No.948/DEL/2022 for the assessment year 2017-18. The appellant, Anuj Bansal, proprietor of M/s. MAA & Sons, challenged the revisional order passed by the Principal Commissioner of Income Tax, Central-2, New Delhi (Pr.CIT), under sections 143(3) and 153A of the Income Tax Act.

Background of the Case

The appeal was brought forward by Anuj Bansal following a revisional order dated March 31, 2022, against an assessment order originally passed on December 31, 2019. The primary contention was that the assessment order had been nullified by a prior ITAT order (ITA No.1016/Del/2021), rendering the subsequent revisional exercise under Section 263 as invalid.

Arguments and Proceedings

During the hearings, the appellant’s counsel argued strongly against the revisional jurisdiction exercised on what was essentially a non-existent assessment order due to its quashing in a previous tribunal decision. On the other hand, the Department’s representative maintained that the original assessment order was valid at the time the 263 revisional order was issued and that an appeal against the quashing of the assessment was pending before the High Court, thus retaining the relevance of the 263 proceedings.

Decision of the Tribunal

After considering the arguments from both sides, the tribunal, comprising Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri Pradip Kumar Kedia, concluded that the revisional proceedings undertaken by Pr.CIT were invalid due to the assessment order’s non-existence post the ITAT’s earlier decision. Consequently, the tribunal quashed the revisional order under Section 263 of the Act but also noted that should the high authority or court revive the assessment order on any ground, the revisional authority would be at liberty to exercise its powers as per the law.

Conclusion

The tribunal’s judgment delivered on January 17, 2023, allowed the appeal of Anuj Bansal, setting aside the questioned revisional order and underscoring the importance of the chronological validity of underlying orders in revisional exercises. This case marks a significant point in litigation concerning revisional powers under the Income Tax Act.

Overview of ITA No.948/DEL/2022 Judgment: Anuj Bansal vs Pr CIT, New Delhi