The case of ITA 549/DEL/2021 concerns an appeal by Malvinder Mohan Singh against the order of the Principal Commissioner of Income Tax, Delhi-VII (Pr.CIT), which involves the exercise of revisional powers under Section 263 of the Income Tax Act, 1961.
Malvinder Mohan Singh, a resident of New Delhi, appealed against the Pr.CIT’s decision to revise an earlier assessment under Section 143(3) of the Income Tax Act, which was combined with Section 263 and Section 144B. The revisional authority challenged the accuracy of the original assessment and sought to set it aside for a more thorough review.
The case was heard by the Income Tax Appellate Tribunal, Delhi Bench ‘E’, with judicial member Shri Challa Nagendra Prasad and accountant member Shri Pradip Kumar Kedia presiding. During the proceedings, both the appellant’s and respondent’s arguments were considered in detail.
The appellant argued that the original assessment should stand as the income subjected to revision had not been altered and was accepted without dispute in subsequent assessments. The respondent, represented by the Pr.CIT, defended the revisional order, noting the appellant’s lack of cooperation during the assessment process and insisting on the necessity of the revision for a comprehensive and accurate assessment.
The Tribunal found that the appeal had become infructuous since there was no longer any prejudice against the appellant following the latest assessment order, which accepted the income figures originally declared. Consequently, the appeal was dismissed as it no longer presented a live controversy affecting the appellant.
This decision underscores the importance of cooperation with tax authorities during assessments and illustrates the conditions under which revisional powers under Section 263 can be invoked. It also highlights the procedural aspects of dealing with appeals related to such revisions, emphasizing that without ongoing prejudice or material error affecting the appellant, challenges to revisional orders may be considered moot.
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