An order already revised under sec. 264 couldn't be subsequently revised by invoking sec. 263

Where original assessment order had been revised under section 264 and, thus, no longer existed, order passed by CIT under section 263 revising original assessment order was void ab initio

Facts

a)    Assessee filed revision application under section 264 before the Commissioner of Income-tax (CIT) to revise the assessment order passed by Assessing Officer (AO) under section 143(3).

b)    CIT accepted the revisional application of assessee and directed AO to revise the assessment order accordingly.

c)    However, subsequently, the original assessment order of AO was revised by CIT under section 263.

c)    The said order passed under section 263 was challenged by the assessee before the Tribunal. The tribunal set aside order passed by CIT.

d)    Aggrieved by the order of tribunal, revenue filed the instant appeal before the High Court.

The High Court held in favour of assessee as under-

1)    It was clear from the facts of the case that original assessment order was revised by CIT under section 264. Hence, original assessment order was no longer in existence.

2)    Hence, the Tribunal having considered this factual position rightly arrived at a conclusion that the CIT had no jurisdiction to revise the order which was not in existence.

3)    Therefore, the order passed by CIT under section 263 revising the non-existing order was void-ab-initio and nullity in the eye of the law- [2016] 67 taxmann.com 229 (Karnataka)