ITAT Quashes Second Order Giving Effect; Holds Two Assessments Cannot Co-Exist

The assessee, engaged in real estate and pawn broking, was originally assessed under Sections 143/147 with certain additions. On further appeal, the Tribunal set aside specific additions and remanded the matter to the Assessing Officer (AO) for fresh adjudication. The AO passed an Order Giving Effect (OGE) granting relief, issuing refund, and directing lifting of property attachments, which were accordingly vacated.

Thereafter, nine months later, the AO issued fresh notices under Section 142(1) and passed another order dated 29.12.2018 under Section 143(3) r.w.s. 254, reiterating the earlier remanded additions. The CIT(A) held that once an OGE had already been passed, the second order was without jurisdiction. The Revenue appealed against the order by CIT(A).

Issue Raised: Whether the AO could pass a second order under Section 143(3) r.w.s. 254 for the same assessment years after already passing an Order Giving Effect to the Tribunal’s directions.

Tribunal’s Decision: The Tribunal held that two assessment orders determining total income for the same assessment year cannot coexist. The first OGE was clearly passed in consequence of the Tribunal’s remand and determined relief and refund. There is no provision under the Act permitting the AO to pass one order giving effect and later pass another re-adjudicating the same issues.

The Tribunal observed that it necessarily operated under Section 143(3) r.w.s. 254, even if not expressly stated. Passing the second order amounted to an impermissible review of the earlier order. Therefore, the Tribunal upheld the CIT(A)’s finding that the order dated 29.12.2018 was non-est and without jurisdiction, and dismissed the Revenue’s appeals.

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