Once order passed by CIT u/s 263 is quashed, AO has no jurisdiction to pass consequential order u/s 143(3) r.w.s. 263:

CIT passed an order u/s 263 which was quashed by ITAT. AO passed an order u/s 143(3) r.w.s. 263 as per the directions of CIT. Assessee challenged the said order passed by AO. Hon’ble ITAT held that since CIT’s order passed u/s 263 was quashed by ITAT, AO had no jurisdiction to pass any such consequential order. The said view was upheld by the Hon’ble High Court also.

[B DEVCHAND & SONS SHIPPING PVT. LTD. - TAX APPEAL NO.53 of 2012 - GHC]