TMI Blog2023 (3) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... the order passed by PCIT u/s 263 of the Act. Appeal filed by the assessee is allowed. - ITA No.567/Coch/2022 - - - Dated:- 1-8-2022 - Shri Chandra Poojari, Accountant Member And Shri George George K., Judicial Member For the Appellant : Shri R. Krishnan, A.R. For the Respondent : Shri Shantam Bose, D.R. ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by assessee is directed against order of PCIT passed u/s 263 of the Act dated 25.3.2022. The assessee is in appeal before us with regard to taking of issue by PCIT u/s 263 of the Act by way of following grounds: 1) The Learned Principal Commissioner of Income Tax erred in setting aside an assessment, which was not a valid assessment in the eyes of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order u/s 144 dated 25.11.2019, passed by the Assessing Officer is erroneous in so far as it is prejudicial to the interest of revenue for the reasons mentioned below: The assessee had introduced capital amounting to Rs.43,11,583/ - during the previous year relevant to the AY 2017-18. The assessee has failed to furnish any detail /explanation regarding the capital introduced by him. In the absence of any detail /explanation by the assessee with regard to the capital introduction made, the same remains unexplained. The AO has also failed to verify the sources for this capital introduction. Thus, it is clear that the AO has mistakenly and erroneously omitted to consider the above facts, while completing the assessment, thereby caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order issued by the AO. In any case, it is evident that the AO has incorrectly assumed the facts of the case and has incorrectly applied the law while passing the impugned assessment order. Ld. CIT(A) noted that the AO has passed the impugned assessment order without application of mind and if he considers the submission made by the assessee in the proper context, it would appear that the AO has not applied the principles of natural justice as well while completing the assessment proceedings. Therefore, Ld. CIT(A) held that the AO has passed an erroneous assessment order which is also prejudicial to the interest of the revenue. 3.1 The above omission by the Assessing Officer in the assessment order is erroneous in so far as it is prej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case correctly. In our opinion, issue of notice u/s 143(2) of the Act within statutory period before completion of assessment is a mandatory in nature as held by Hon ble Supreme Court in the case of ACIT Vs. Hotel Blue Moon reported in 321 ITR 362, wherein held as under:- If the AO for any reason, repudiate the return filed by the assessee, he must necessarily issue notice u/s 143(2) of the Act within the time prescribed in the proviso to section 143(2) of the Act; omission on the part of the AO to issue notice u/s 143(2) of the Act cannot be a mere procedural irregularity and the same is not curable . 5. Further, same view was taken by Hon ble Supreme Court in the case of CIT Vs. Laxman Das Khandelwal reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
