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2023 (3) TMI 1462 - DELHI HIGH COURTValidity of assessment order passed u/s 143(3) - personal hearing to the petitioner not given - AO has added to the petitioner firm’s taxable income received towards compensation received, by treating it as revenue received and of variance in turnover in the Income Tax Return (ITR) and in the GST-1/GST-3B return of the petitioner/assessee - HELD THAT:- It is not in dispute that no personal hearing was granted to the authorized representative of the petitioner/assessee. The counter-affidavit filed on behalf of the respondent/revenue, inter alia, discloses that neither was any show cause notice issued nor was any hearing granted prior to framing of the assessment order. The reason furnished for non-issuance of the show cause notice, as articulated in the counter-affidavit, is that the petitioner/assessee was indulging in deliberate procrastination. Admittedly, information in the form of documents, was sought by the AO which would shed light as to why cancellation of development agreement, was brought about. Insofar as addition on account of variation in turnover was concerned; the petitioner sought to explain the variation by filing reconciliation statement. This was brushed aside by the AO by holding that an adjustment made while reconciling the turnover figure in the ITR with the turnover figure appearing under the GST-1/GST-3B return had not been clarified. To our minds, had the AO granted personal hearing to the petitioner, some light may have been shone on this aspect of the matter. According to us, the best way forward would be to set aside the impugned assessment order. It is ordered accordingly. Liberty is, however, given to the AO to pass a fresh assessment order.
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