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2020 (12) TMI 560 - AT - Income TaxRevision u/s 263 - advance taken by the assessee's employee Shri Angad Singh which was shown in the balance sheet as liability in place of asset - Genuineness and reasonableness of the payments made to Shri Angad Singh is required to be verified from the angles of section 37(1) and Section 40(b) read with Section 40A(2) - HELD THAT:- Additional issues for which also Ld. Pr. CIT has given direction to AO for fresh assessment was neither a subject matter of the SCN nor an opportunity was given by the Ld. Pr. CIT before passing the impugned order. CIT, DR after perusal of the order sheet of Ld. Pr. CIT has fairly conceded the fact that there was no mention about Ld. Pr. CIT asking any question to assessee regarding these additional issues to assessee as stated (reproduced supra) in para 4.2 of the impugned order. Therefore, (these additional issuesshould not be given effect to by the AO while carrying out fresh assessment as directed by Ld. Pr. CIT, because these additional issues were not confronted by the Ld. Pr. CIT to the assessee before passing the impugned order, so these additional issues are fragile for violation of Natural Justice and so bad in law as held by Hon'ble Supreme Court in Amitab Bachan [2016 (5) TMI 493 - SUPREME COURT] - Therefore, we modify the order of Ld. Pr. CIT and direct the AO not to give effect to the additional issues as directed by ld. Pr. CIT in his impugned order. The order of the Ld. Pr. CIT stands modified to that extend as discussed. And the AO to give effect to the order of Ld. Pr. CIT on the issue which was dealt by him in SCN in accordance to law after hearing the assessee.
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