Sir Ratan Tata Trust vs. Dy. CIT(Exemption)

Parties Involved

Facts Summary

The assessee, Sir Ratan Tata Trust, a Public Charitable Trust engaged in charitable activities, filed its return of income for the Assessment Year 2016-17 declaring total income at Rs.Nil. The return was processed under section 143(1) of the Income Tax Act, 1961, and the case was selected for scrutiny. The Assessing Officer passed an assessment order under section 143(3) of the Act dated 04.12.2018, accepting the returned income. Subsequently, the Commissioner of Income Tax (Exemption) invoked revisionary powers under section 263 of the Act and set aside the assessment order, directing the Assessing Officer to pass a fresh assessment order. The Assessing Officer passed the assessment order under section 144 r.w.s. 263 r.w.s. 144B of the Act on 29.03.2022, determining the total income at Rs.261,30,07,821/-. The assessee appealed against this order before the first appellate authority, who upheld the order of the Assessing Officer. The assessee further appealed to the Income Tax Appellate Tribunal, challenging the order of the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. The Ld CIT(A) erred in upholding the order u/s 144 r.w.s 263 of the Act even though the foundational revisionary order passed by the ld. CIT u/s. 263 of the Act had been quashed by the Hon'ble Income-tax Appellate Tribunal.
• 2. The ld. CIT(A) erred in not appreciating that he could not have legally sustained the order of the AO on merits, which had become non-est by virtue of the setting aside of the revisionary order by the Hon'ble Tribunal.
• 3. The Ld CIT(A) erred in holding that the ITAT order was not made available to the Assessing Officer (AO) despite the fact that the ITAT order quashing order w's 263 of the Act was passed on 16.02.2022 which is before passing of assessment order dated 29.03.2022 and the copy of the ITAT order was submitted to AO by the Appellant via email during the assessment proceedings.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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