Commissioner cannot invoke his Revisionary Jurisdiction If the matter has been already heard by CIT (A): ITAT [Read Order]

ITAT-kolkata-taxscan

The Income Tax Appellate Tribunal Jaipur bench in its recent order observed that the Commissioner cannot invoke his Revisionary Jurisdiction under Section 263 of the Income Tax Act, 1961 if the matter has been already heard by CIT (A).

The bench comprising of Judicial Member Vijay Pal Rao and Accountant Member Vikram Singh Yadav ruled so while allowing the assessees appeal.

The instant appeal filed by assessee challenging the order of CIT, Alwar invoking jurisdiction under section 263 of the Act setting aside the assessment order for AY 2011-12 passed by the Assessing Officer u/s 143(3) of the Act.

During the course of hearing, the counsel for assessee contended that no show cause has been served on the assessee by the CIT and in absence of this notice the assessee has not been provided an opportunity to represent his case which is also specifically mandated u/s 263 of the Act and the principle of natural justice has been violated.

On counterpart, the counsel for revenue drawn the attention that the show cause notice were returned by the postal department and has been not accepted by the assesssee.

The Tribunal observed that before the issuance of the show cause notice exactly identical issue relating to verifiability of bank deposits was already a subject matter of appeal filed by the assessee before the ld. CIT (A) and the same has been considered before.

Finally, the Tribunal concluded that where the CIT (A) was already ceased of the matter wherein the matter has been contested before him by the AO, the Pr. CIT does not have the jurisdiction to exercise his powers u/s 263 of the Act on the same matter as per the explicit provisions contained in clause (c) to explanation 1 to section 263 of the Act.

The tribunal bench accordingly set aside the impugned order of the Pr. CIT u/s 263 of the Act for want of jurisdiction.

Subscribe Taxscan Premium to view the Judgment
taxscan-loader