Case Number: ITA 50/DEL/2021
Appellant: Mikado Realtors (P) Ltd, New Delhi
Respondent: Pr. CIT (Central), Gurugram
Assessment Year: 2017-18
Case Filed on: 2021-01-27
Order Type: Final Tribunal Order
Date of Order: 2021-04-20
Pronounced on: 2021-04-20
In the Income Tax Appellate Tribunal, Delhi Bench “E”, New Delhi, a significant case was presented involving Mikado Realtors P. Ltd. The core of the dispute revolved around the jurisdictional validity of the assessment order and its subsequent revision under Section 263 of the Income Tax Act.
The appellant, Mikado Realtors P. Ltd., had furnished an original return of income for the financial year 2016-17, relevant to the assessment year 2017-18, declaring a loss. However, this was challenged by the Principal Commissioner of Income Tax (Central), Gurugram, on various grounds, leading to a revisionary order under Section 263 of the Act.
The appellant raised 16 grounds challenging the impugned order dated 24.12.2020 passed by the Principal Commissioner of Income Tax (Central), Gurugram. Key among these were:
The appellant’s counsel, Mr. Gautam Jain, argued that the entire assessment proceedings were void ab initio as they were initiated under the wrong section. It was contended that the assessment should have been completed under section 153C following the satisfaction note dated 25.09.2018.
Conversely, the respondent, represented by Ms. Pramita M. Biswas, CIT-D.R., argued that the validity of the assessment order could not be challenged in the revisionary proceedings under section 263 and cited various judgments to support this stance.
The Tribunal, comprising Shri Amit Shukla, Judicial Member, and Shri O.P. Kant, Accountant Member, carefully analyzed the facts and the legal contentions. The key findings were:
The Tribunal ruled in favor of the appellant, quashing the order passed under section 263 by the Principal Commissioner of Income Tax (Central), Gurugram. It was held that the original assessment order dated 18.12.2018 was invalid, and thus, the revisionary proceedings based on it were also invalid.
Final Judgment: The appeal was allowed, setting aside the revisionary order under section 263.
This case underscores the critical importance of proper jurisdictional adherence in tax assessment proceedings and affirms that any deviation can render subsequent orders void.
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