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Judgment
PER S. RIFAUR RAHMAN, AM :
This appeal is filed by the Revenue against the order of Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short] dated 21.07.2025 for the Assessment Year 2012-13.
Considered the rival submissions and material placed on record. From the submissions of both the parties and facts on record, we observed that return of income was filed by the assessee on 28.09.2012 at an income of Rs.40,87,730/-, however, was assessed at an income on Rs.46,23,477/- under section 143(3) of the Income-tax Act, 1961 (for short ‘the Act’. We further observed that the additions/disallowances were 10% of expenses on account of Printing Stationery, Travelling, Freight Outward, Repair, General Expenses total being Rs.4,74,445/- and Rs.16,573/ on account of difference in Creditors balance and the total disallowance/ additions were Rs.5,35,747/. Aggrieved assessee filed an appeal before the Ld. CIT(A), Meerut who allowed the appeal and returned income was accepted as total income of the assessee.
Further we observed that the assessee received a notice u/s 148 of the Act and in response, he submitted the return of income on same income which had been filed earlier. Subsequently notice u/s 142(1) of the Act was received and accordingly proper reply with all the details was filed. We observed that the AO was satisfied and returned income was accepted.
We further observed that however, the Ld P.CIT being not convinced invoked section 263 of the Act and asked same questions as had been asked by AO u/s 148 proceedings. In reply, the assessee submitted reply as per the queries raised and not being satisfied, Ld. PCIT, Ghaziabad, sent back the file to AO with her observations to be followed to reassess the assessee. However, the assessee not being satisfied filed an appeal before the ITAT and the ITAT in ITA No.1148/Del/2022 allowed the appeal of the assessee vide order dated 19.09.2023 holding that “Accordingly, we do not find any merit in the issues raised by Ld. PCIT in the order passed u/s 263 of the Act and accordingly, we quash the order passed u/s 263 of the Act by Ld. PCIT".
Further we observed that in between the order of ld. PCIT and aforesaid order of ITAT in the case of the assessee, the case was transferred to AO, unit of NFAC, who followed the directions of Ld. PCIT, passed the order making additions to the tune of Rs.12,98,24,576/- and assessed the total income at Rs.13,39,12,306/. The assessee, on receiving the impugned assessment order, filed appeal before ld. CIT (A), NFAC, Delhi and on the faceless hearing, the assessee submitted the order in its own case of ITAT in appeal no.11481De1/2022 and requested that the order of Ld. PCIT, Ghaziabad had already been quashed and the re-assessment order passed by AO NFAC, Delhi be set aside and the returned income be accepted and accordingly the appeal was allowed. However, the Revenue filed the present appeal before ITAT, Delhi
From the facts as narrated above, we are of the considered opinion that the ITAT has already allowed the appeal of the assessee in ITA No.1148/De/2022 for AY 2012-13 and the ld. CIT (A) rightly observed that the ITAT has quashed the revision order dated 29.03.2022 passed u/s 263 of the Act and accordingly the consequential order u/s 147 r.w.s. 263 r.w.s. 144B of the Act dated 29.03.2023 passed by the Assessing Officer is not found to be sustainable. Hence, the appeal filed by the Revenue is infructuous and the same is dismissed as infructuous.
In the result, the appeal of the Revenue is dismissed.