Akash Petroleum Private Limited Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that passing of revisionary order by PCIT u/s. 263 of the Income Tax Act without giving proper and adequate opportunity of being heard to the assessee is liable to be set aside. Thus, matter restored back to the file of PCIT to pass fresh revisionary order.
Facts- The present appeal has been filed by the assessee before Income Tax Appellate Tribunal, Ahmedabad Division Bench, Ahmedabad has arisen from the Revisionary Order passed by ld. Principal Commissioner of Income Tax , Ahmedabad holding that the assessment order passed by the learned Assessing Officer is erroneous and prejudicial to the interest of Revenue, on the ground that the AO has failed to make additions to the tune of 9,95,000/- u/s. 2(22)(e) of the 1961 Act , and the said assessment order passed by AO was set aside by PCIT and directions were issued by PCIT to the AO to pass fresh assessment order.
Conclusion- Held that the principles of natural justice are breached by ld. PCIT. Prejudice has been caused to the assessee, vide revisionary order dated 21.03.2024 passed by ld. PCIT u/s 263 which was passed by ld. PCIT without giving proper and adequate opportunity of heard to the assessee. The assessee has raised specific grounds in the memo of appeal filed with Tribunal vide ground no. 1, wherein the assessee has contended that the revisionary order dated 21.03.2024 was passed by ld. PCIT u/s. 263 without providing reasonable and sufficient opportunity of hearing while passing an exparte order. The submissions filed by the assessee on 21.03.2024 before ld. PCIT were also not considered by ld. PCIT. In its revisionary order dated 21.03.2024 passed by ld. PCIT u/s 263 , the assessment order passed by the AO was set aside and directions were issued to the AO by ld. PCIT to make additions to the tune of Rs. 9,95,000/- u/s 2(22)(e) . Under these facts and circumstances of the case, we are inclined to set aside the revisionary order dated 21.03.2024 passed by ld. PCIT u/s 263 and restore the matter back to the file of ld. PCIT to pass fresh revisionary order u/s 263 after giving proper and adequate opportunity of being heard to the assessee.
