Case Law Details
Citron Infraprojects Ltd. Vs PCIT (ITAT Mumbai)
Introduction: In a recent judgment dated 27th July 2023, the Income Tax Appellate Tribunal (ITAT) Mumbai set aside an order passed by the Principal Commissioner of Income Tax (PCIT) concerning Citron Infraprojects Ltd. This decision raises crucial questions about the principles of natural justice, revision orders, and assessment proceedings in income tax cases.
Non-Adherence to Principles of Natural Justice: One of the key issues raised in the appeal by Citron Infraprojects Ltd. was that the PCIT did not adhere to the principles of natural justice while passing the ex-parte order. The ITAT Mumbai emphasized the importance of providing an adequate opportunity for the assessee to be heard.
Revisionary Power of PCIT: The ITAT Mumbai set aside the PCIT’s use of revisionary powers under section 263 of the Income Tax Act, stating that the show cause notice was not complied with and the assessee did not receive a fair chance to present their case.
The Issue of Assessment Order: The appellant disputed the assessment order passed by the Assessing Officer (AO) under section 144 and 153A, claiming that it was erroneous and prejudicial to the interest of the revenue. ITAT Mumbai ruled that the assessment should be revisited.
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