The Ahmedabad Bench of the Income Tax Appellate Tribunal ( ITAT ) set aside the Principal Commissioner of Income Tax’s ( PCIT ) revision order for failing to give adequate opportunity for the assessee and ignoring the submission before issuing the order. The tribunal remanded the matter back on the file of the PCIT.
Assessee, Akash Petroleum filed its income tax returns for the assessment year (A.Y) 2014-15. The income tax assessing office (AO) passed an assessment order under section 147 read with Section 144B of the Income-tax Act, 1961. The PCIT observed that the AO erred in the assessment order and failed to make an addition. The PCIT directed the AO to make additions of Rs. 9,95,000 under section 2(22)(e) of the Act and set aside the assessment order by the AO under section 263 of the Act.
Ready to Grow? Choose a Course That Fits Your Goals!
The PCIT issued a notice dated 11/03/2024 under section 263 of the Act seeking compliance by 18.03.2024. The assessee filed the submissions on 21.03.2024. The PCIT passes the revisionary order on 21.03.2024 without even considering the assessee’s submission and by giving only one notice for the hearing.
Aggrieved by this decision, the assessee appealed before the ITAT, Ahmedabad. The assessee’s counsel argued that the PCIT failed to give more opportunity for a hearing which violated the principles of natural justice and to set aside the revisionary order passed on 21.03.2024. The assessee’s counsel further submits to remand the matter back on the file of the PCIT and to pass a fresh order after considering the assessee’s submissions.
Ready to Grow? Choose a Course That Fits Your Goals!
PCIT’s Counsel represented by Akhilendra Pratap Yadav argued that the assessee failed to submit the reply on or before 18th March 2024 and prayed to uphold the revisionary order dated 21.03.2024.
The division bench of Ramit Kochar ( Accountant Member ) and T. R Senthil Kumar ( Judicial Member ) heard both sides’ arguments and observed that the PCIT gave only one notice of hearing before passing the revisionorder. The Tribunal noted that the PCIT breached the natural justice and prejudice had been caused to the assessee. The tribunal set aside the revisionorder dated 21.03.2024 and directed the PCIT to give adequate opportunity to the assessee before issuing the fresh order.
The tribunal remanded the matter back on the file of the PCIT and allowed the appeal for statistical purposes.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
