PCIT Can’t Initiate Revision Proceedings When CIT (A) Has Already Disposed Of The Appeal: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the revision order passed by the PCIT as the CIT (A) had already disposed of the appeal.The bench of Chandra Mohan Garg (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the issue of granting additional TDS credit was already considered and decided by the CIT (A). For adjudication of the same...
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed the revision order passed by the PCIT as the CIT (A) had already disposed of the appeal.
The bench of Chandra Mohan Garg (Judicial Member) and M. Balaganesh (Accountant Member) has observed that the issue of granting additional TDS credit was already considered and decided by the CIT (A). For adjudication of the same issue, the PCIT cannot invoke revision proceedings under Section 263 in view of the provisions of Explanation 1(c) to Section 263(1).
The appellant/assessee filed a grievance petition before the PCIT seeking a refund of taxes. The PCIT initiated revision proceedings by issuing a show cause notice, treating the order passed by the AO under Section 143(3) read with Section 147 as erroneous and prejudicial to the interests of the department.
The assessee argued for the validity of the first revision order passed under Section 263 of the Act by placing reliance on Rule 127A of the Income Tax Rules.
The department stated that since the first revision order passed under Section 263 was not signed by the PCIT, it became an unsigned document, non est, null and void ab initio.
The tribunal found that the issue had already been decided by the CIT (A). Hence, on the date of the initiation of Section 263 proceedings, the CIT (A) had already disposed of the appeal by adjudicating the issue on merits.
"We could conclusively hold that the revision order passed by the Ld. PCIT u/s 263 of the Act, be it on March 23, 2020, or March 13, 2021, is against the provisions of the Act and deserves to be quashed. Accordingly, both the revision orders passed by the PCIT are hereby quashed as void ab initio," the ITAT said.
Case Title: Late, Dipankar Mohan Ghosh Versus CIT(IT)
Case No.: ITA No.277/Del/2021
Date: 28/06/2023
Counsel For Appellant: Salil Kapoor, Sumit Lalchandani and Praveen Geol
Counsel For Respondent: T.James Singson