Case Law Details
Inject Care Parenterals Pvt. Ltd Vs PCIT (ITAT Surat)
ITAT Surat restored the matter back to the file of Pr. CIT as revisionary order under section 263 of the Income Tax Act cannot be passed without issuance of show cause notice on the subject matter. Such revisionary order is against the principal of natural justice.
Facts- The case of the assessee was selected for scrutiny and assessment was completed u/s 143(3) r.w.s. 143A/143(3)(b). Thereafter, revised the same by Pr.CIT by exercising jurisdiction u/s 263 with regard to the issue of employee’s contribution not deposited before due date.
Notably, Pr.CIT accepted the contention with regard to the issue of employee’s contribution but found that various other issues were not scrutinized by the assessee. Accordingly, Pr.CIT held that the assessment order passed on 22/03/2021 by the assessing Officer is erroneous in so far as prejudicial to the interest of revenue. The assessment order was set aside with the direction to the Assessing officer to frame the assessment de novo after making proper enquiries by giving reasonable opportunity to the assessee. Aggrieved by the order of ld. Pr.CIT, the assessee has filed present appeal before this Tribunal.
Conclusion- Held that no show cause notice on the two issues i.e. one related to addition on account of fixed assets and other on account of foreign exchange fluctuation gain was issued by the ld. Pr.CIT. Thus, the order of ld. Pr.CIT is not justifiable on such issue being in violation of principal of natural justice, otherwise it is a condition precedent in the language of section 263 itself. However, the ld. AR of assessee in all fairness made a prayer to restore the matter back on both the issues to the file of ld. Pr.CIT for granting them opportunity to explain both the issues. Therefore, considering such plea, we deem it appropriate to accept such contention and the matter is restored back to the file of ld. Pr.CIT to grant opportunity of hearing to the assessee on both the issues. It is made clear that no other issue was specifically touched by the ld. Pr.CIT, therefore, the ld. Pr.CIT shall restrict his jurisdiction only on issues of fixed asset as well as on foreign exchange fluctuation gain.
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