Railesh Naik Vs PCIT (ITAT Surat)
ITAT Surat held that it is mandatory to provide proper opportunity of being heard to the assessee before finalization of revisionary proceedings under section 263 of the Income Tax Act. Accordingly, matter restore back to file of PCIT to pass fresh order after granting opportunity of hearing.
Facts- Assessee had not filed his returned of income for AY.2018-19. Specific information was flagged as per Risk Management Strategy of CBDT under the head “non-filing of return (NMS) cases” that assessee had purchased an immovable property of Rs.30,00,000/- and sold another immovable property for Rs.51,90,200/-. However, AO accepted the returned income of Rs.72,590/- in the order u/s 147 r.w.s. 144B of the Act.
PCIT, verified the records including the assessment order and the submission made by the assessee during the assessment proceedings. He noted that assessee had purchased two immovable properties for Rs.30,00,000/- and Rs.22,00,000/- respectively whose market value as per Stamp Valuation Authority (SVA) were Rs.53,06,122/- and Rs.40,40,816/-. Accordingly, the difference between the sale price and fair market value (FMV) was Rs.23,06,122/- and Rs.18,40,816/- respectively totalling to Rs.41,46,938/-. This was required to be taxed u/s 56(2)(vii)(b) of the Act. Accordingly, PCIT set aside the order of AO with a direction to pass fresh assessment order taking into consideration the issues discussed in his order.
