Once the order passed by CIT u/s 263 gets vacated, asst. order passed by AO u/s 143(3) r.w.s. 263 as per direction given by CIT doesn’t survive:

AO passed an order u/s 143(3) r.w.s. 263 since the assessment was set aside by CIT vide his order passed u/s 263 directing AO to frame the assessment de novo. Hon’ble ITAT observed that the said order passed by CIT u/s 263 was vacated by the Hon’ble ITAT. It was held that since the order passed u/s 263 has been vacated, asst. order passed by AO in pursuance to the said order of CIT doesn’t survive. Hence, the Revenue’s appeal was dismissed.

[DCIT vs. Shri Sudarshan P. Amin – ITA No.2750/Ahd/2012]