Multiple assessment conflicting revision orders during pendency of appeal before CIT(A)

Facts:

An Assessment was made on the assessee under Section 144/143(3) which was appealed before CIT(A). During pendency of the appeal, the PCIT invoked powers of revision and a fresh assessment was made under Section 143(3). The fresh assessment was also set aside by PCIT and another fresh assessment was made which was also set aside and thereafter an order prejudicial to the interest of the assessee was passed by PCIT under Section 263. Meanwhile the CIT(A) held that since the original order was set aside the appeal became infructous dismissed the appeal of the assessee. Aggrieved assessee appealed to ITAT with the plea that the action of the PCIT was uncalled for especially when an appeal was pending and the dismissal of appeal by CIT(A) was also incorrectly done.

Held in favour of the assessee by remanding the case to CIT(A) for a proper adjudication of the dismissed assessment order and should there be any further appeal on the last revision order of CIT(A) that also be clubbed and CIT(A) to hear the case on merits accordingly.

Ed. Note: The three time revision action of the PCIT is unusual but is not against law as Section 263 does not tell or imposes a limitation on the number of revisions permitted.

Case: Jupax Distributors Pvt. Ltd. v. ACIT 2023 TaxPub(DT) 1561 (Srt-Trib)