Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 262 - AT - Income TaxRevision u/s 263 - denial of natural justice - PCIT has stated that AO has not examined the “Loan Processing fee”and at end as directed the assessing officer to examine the other issue, namely, the issue of “addition of fixed assets” - as argued PCIT did not provide opportunity to the assessee for hearing on the issue of “addition of fixed assets” - As assessee’s case was selected for ‘limited scrutiny’ to verify the share capital or other capital. However, the ld. PCIT has exercised the jurisdiction on the issue which was not subject matter of ‘limited scrutiny’ - HELD THAT:- From the judgment of Hon`ble Supreme Court in the case of Amitabh Bachchan [2016 (5) TMI 493 - SUPREME COURT] it is vivid that what is contemplated by Section 263, is an opportunity of hearing to be afforded to the assessee. Failure to give such an opportunity would render the revisional order legally fragile not on the ground of lack of jurisdiction but on the ground of violation of principles of natural justice. Now coming to the assessee`s facts, we note that ld PCIT has issued the notice under section 263 of the Act about the issue of “Loan Processing fee”, whereas at the end of revision order, the Learned Principal Commissioner of Income Tax, has directed the assessing officer to examine the other issue, namely, the issue of “addition of fixed assets”, which is without giving an opportunity of hearing to the assessee, hence order passed by ld PCIT is not in accordance with the mandatory provisions of section 263 of the Act, therefore we quash the order of ld PCIT. Decided in favour of assessee.
|