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2015 (8) TMI 1157 - AT - Income TaxRevision u/s.263 - sufficient opportunity non granted - Held that:- U/s.263 CIT is empowered to call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the AO is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. Therefore, the ld.CIT is empowered to call for the record and examine the record and make inquiry as he deems proper before passing the order thereon as the circumstances justify. It is expected from the ld.CIT in the event of invoking the provisions of section 263 of the Act he would afford sufficient opportunity to the assessee for representing and defending his case. In the case in hand, the assessee was given two opportunities of seven days each including the period taken for service of notice/letter. Under these facts, we are of the considered view that the assessee was not granted sufficient opportunity to defend his case. It is settled principle of law that revisionary power is required to be exercised with a great caution because it affects the taxpayer’s rights and it is not expected that the concluding assessment proceedings be reopened on the whims and fancies of the authority who is bestowed with power to revise the order, but such exercise of power should be in accordance with settled principle of law and procedure prescribed by law. Thus we are of the considered view that the assessee was not given sufficient opportunity and the explanation with regard to the issues on the basis of which the provisions of section 263 of the Act were invoked requires re-consideration at the end of the ld.CIT. Therefore, the impugned order is hereby set aside and the ld.CIT is directed to consider the explanation of the assessee and decide the matter afresh in accordance with law. - Decided in favour of assessee for statistical purposes.
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