Dhwani Finserve Pvt. Ltd. Vs PCIT (ITAT Rajkot)
ITAT Rajkot held that PCIT is duty bound to examine the documents and details submitted by assessee during revisionary proceedings u/s. 263. In absence of any findings with regard to documents/ details by PCIT, the same is violative of principles of natural justice and hence matter remitted back to the file of PCIT.
Facts- By way of this appeal, the assessee has challenged the correctness of the order of the Learned Principal Commissioner of Income Tax-1, Rajkot passed u/s.263 of the Income Tax Act, 1961 dated 31/03/2024 for Assessment Year (AY) 2017-18. It is mainly contested that PCIT did not provide fair opportunity of hearing to the assessee. It is also alleged that PCIT did not make any comment on the documents which was a part of the assessment report and which were submitted before the AO. However, the Ld. PCIT has made the comments on the other documents which were not submitted before the AO. Therefore, the assessee submitted that the Ld. PCIT ought to have made comment on the documents and evidences submitted by the assessee before him during the revisionary proceedings u/s.263 of the Act.
Conclusion- Held that PCIT has not made any specific comment in his order or did not mention any error about the documents already submitted by the assessee during the revisionary proceedings u/s.263 of the Act. Therefore, we are of the view that it was the duty of PCIT to examine the documents and the details submitted by the assessee, during the revisionary proceedings u/s.263 of the Act, and find out any patent error, if any, in these documents and that patent error should be informed to the AO to correct the same. Since PCIT has a supervisory role and it is his duty to examine the documents which were submitted by the assessee, during the proceedings u/s.263 of the Act, before him and his findings whether assessee documents are relevant or irrelevant. Since no finding has been given by PCIT, therefore, it is against the principles of natural justice and, hence, we are of the considered view that the matter may be remanded back to the file of the ld. PCIT. Therefore, we set aside the order of the Ld. PCIT and remit the issue back to the file of PCIT to provide the findings on the documents submitted by the assessee during the course of proceedings u/s.263 of the Act and also grant a reasonable opportunity of being heard to the assessee.
