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2022 (5) TMI 938 - ITAT CHENNAIRevision u/s 263 by CIT - assessment of trade discount received by the assessee - HELD THAT:- According to the PCIT, although the assessee had received Rs. 23,16,261/- as trade discount, the AO has estimated gross profit @ 5.4% and made addition of Rs. 1,25,000/-, instead of making addition towards entire amount of trade discount amounting to Rs. 23,16,261/-. The assessee neither appeared nor filed any details. PCIT left with no choice disposed off the case and passed order u/s. 263 and set aside the assessment order passed by the Assessing Officer. No doubt, when the assessee was not responding to show-cause notice issued by the authorities, the authorities are bound to dispose off proceedings in accordance with law, but such proceedings should be completed, after affording reasonable opportunity of hearing to the assessee. It is well settled law of principles of natural justice that before taking any decision, a reasonable opportunity must be given to the other side. In this case, the learned PCIT had passed order u/s. 263 by giving one date of hearing to the assessee. In our considered view, the order passed by the PCIT u/s. 263 without observing principles of natural justice is contrary to law. Therefore, we are of the considered view that appeal filed by the assessee needs to go back to the file of the learned PCIT and thus, we set aside order passed by the learned PCIT and restore the issue back to the file of PCIT to reconsider the issue afresh in accordance with law, after affording reasonable opportunity of hearing to the assessee. Appeal filed by the assessee is treated as allowed for statistical purposes.
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