Order passed by the PCIT without jurisdiction is Null in the eyes of the law

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA
 [Before Shri J. Sudhakar Reddy, AM and Shri A. T. Varkey, JM]

I.T.A. No. 39/Kol/2020
Assessment Year: 2009-10

Decent Enclave (P) Ltd (Formerly
known as Drishti Accessories (P) Ltd.)
(PAN: AADCD 0308 E)
Appellant 

Vs. 

Pr. CIT-4, Kolkata
Respondent

Date of Hearing (Virtual) 05.05.2021
Date of Pronouncement 18.06.2021

For the Appellant Shri Subash Agarwal, Advocate
For the Respondent Shri John Vincent Donkupuar Longstich, CIT DR

ORDER

Per Shri A. T. Varkey, JM:

 This is an appeal filed by the Assessee against the order of Ld. PCIT-4, Kolkata dated 11.11.2019 u/s 263 of Income Tax Act, 1961 ( hereinafter referred to as the Act) for Assessment year 2009-10.

2. At the outset the Ld. Counsel for the assessee Shri Subash Agarwal pointed out that this is the third (3) exercise of revisional jurisdiction u/s 263 of the Act by the Ld PCIT ; and the assessee is challenging the jurisdiction of Ld. PCIT to invoke the revisional jurisdiction without satisfying the condition precedent as prescribed in Section 263 of the Act.

3. Brief facts of the case is that the assessee company had filed its return of income (ROI) for AY 2009-10 on 17.09.2009, which was processed u/s 143(1) of the Act. Subsequently the case of the assessee was reopened u/s 147 and the first scrutiny assessment order was passed u/s 143(3)/147 of the Act dated 29.12.2011 determining an  income of Rs. 53,130/- (hereinafter referred to as the first assessment order and the AO who passed this order will be referred hereinafter as the First AO).

4. Thereafter the Ld. CIT-II invoked revisional jurisdiction u/s 263 of the Act and set aside the first assessment order dated 29.12.2011 and directed de-novo assessment by order dated 05.03.2014 (hereinafter referred to as the First CIT revisional order and the Ld CIT who passed this order will be referred hereinafter as the First Ld CIT).

5. Pursuant to the order of Ld. CIT-II, dated 05.03.2014, the AO gave effect to it on 31.03.2015, making an addition of share capital & premium to the tune of Rs. 16.25 crores. (hereinafter referred to as the second reassessment order and the AO who passed this order will be referred hereinafter as the Second AO).

6. Thereafter the Ld. PCIT-4, invoked his Second revisional jurisdiction u/s 263 on 19.12.2016 and gave specific direction while framing de novo assessment (hereinafter referred to as the second PCIT revisional order and the Ld PCIT who passed this order will be referred hereinafter as the Second Ld PCIT)

7. Pursuant to the second revisional order of PCIT-4, dated 19.12.2016, the AO conducted enquiry as directed by Ld. PCIT and after being satisfied with the explanation and documents submitted by the assessee to prove the nature and source of the share capital of Rs. 16.26 crores, he accepted the claim of assessee and did not make any addition on this issue vide order dated 26.12.2017 (hereinafter referred to as the Third assessment order and the AO who passed this order will be referred hereinafter as the Third AO). 

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