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2021 (5) TMI 892 - AT - Income TaxRevision u/s 263 - Assessee argued as no opportunity of hearing to the assessee given - Gain on foreign exchange receivables and related forward contracts, is an additional consideration for slump sale of domestic formulation business, and is, therefore, chargeable to tax, which, according to the learned Principal Commissioner, should be added to the returned income of the assessee - HELD THAT:- Principal Commissioner has not given any opportunity of hearing to the assessee on the precise point on which the powers of revision exercised, and, to borrow the words of Hon’ble Supreme Court in the case of Amitabh Bachan [2016 (5) TMI 493 - SUPREME COURT] “there can be no dispute that while the C.I.T. is free to exercise his jurisdiction on consideration of all relevant facts, a full opportunity to controvert the same and to explain the circumstances surrounding such facts, as may be considered relevant by the assessee, must be afforded to him by the C.I.T. prior to the finalization of the decision”. To this extent, undoubtedly, the impugned order is vitiated in law, but the question is what are the implications of this failure on the part of the learned Commissioner. While one can understand anxiety of the assessee to bring an end to the dispute at this forum itself, we are of the considered view that the right course of action will be to send the matter back to the file of the Commissioner for giving an opportunity of hearing to the assessee, on the point on which the impugned revision is actually done in the present case, and thus afford an opportunity to the assessee explain the circumstances surrounding this issue, as may be considered relevant by the assessee. Commissioner will also consider whether the rate of foreign exchange conversion, as pointed out by the assessee and as accepted by the Assessing Officer, is indeed in order, and, if so, whether the subject assessment order can indeed be said to erroneous and prejudicial to the interest of the assessee. In other words, before deciding the matter afresh in the remanded proceedings, learned Commissioner must take a categorical call on this factual aspect, now that it has been pointed out, and in case the stand of the assessee is found to be correct, the matter must end there. As the matter is being remitted back to the file of the learned Commissioner, it is made clear that the subject matter of hearing will be confined to the issue in the impugned revision order, that the learned Commissioner does not have the liberty of modifying or expanding the scope of the impugned revision proceedings, as the remand is for the limited purpose of providing an opportunity of hearing to the assessee on the points taken in the impugned revision proceeding - Assessee appeal is allowed for statistical purposes
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