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2015 (4) TMI 508 - HC - Income TaxRevision u/s 263 on the ground TDS Certificate receipts showed discrepancy - prejudicial and erroneous order - Notice u/s 263 on some ground - Final order u/s 263 is on different ground - Held that:- The show cause notice alleges debiting of expenses on account of stationary and auditor's remuneration to the extent of ₹ 14,725/-, which has not been examined by the Assessing Officer. It is only on these two grounds that the Assessing Officer's order was proposed to be set aside by terming it as erroneous and prejudicial to the interest of the Revenue. However, in the final order of the Commissioner, something which is not forming part of the show cause notice, has been referred and conclusion thereon is rendered. That is in relation to alleged system of accounting adopted by the Assessee, which is stated to be the mercantile system and that is why there is disclosure of lesser income. Nowhere in the show cause notice any system of accounting has been referred nor disclosure of any lesser income over and above what has been referred by us. In such circumstances, the Tribunal rightly came to a conclusion that there is a vital discrepancy in the show cause notice issued under section 263 of the Income Tax Act and the final order of the Commissioner and impugned in the Appeal before the Tribunal. This discrepancy cannot be termed as technical. If the Assessee had no notice of the issue proposed to be examined by the Commissioner, then, he should not have proceeded without the Assessee being given sufficient opportunity and prior in point of time. In the given facts and circumstances, the order of the Commissioner has been set aside on the ground of violation of the principles of natural justice. - Decided against the revenue.
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