TMI Blog2022 (5) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... settled legal principles, as per which, it is requirement of law that reasonable opportunity of hearing must be given to the assessee before passing an order. Since, the learned Principal CIT has not given sufficient opportunity of hearing to the assessee, we are of the considered view that appeal needs to be set aside to the file of the PCIT to give another opportunity of hearing to the assessee. Hence, 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. - I.T.A. No. 89/Chny/2021 - - - Dated:- 28- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the PCIT are as under:- 3. A notice of show cause dated 26/10/2020 was served on the assessee, by email, for objections if any to the proposed revision. The reason for considering the order of assessment as erroneous and prejudicial to the interest of revenue was also furnished to the assessee. On a perusal of the assessment order and the records concerned, it was noticed that the Assessee had sold sites for Rs. 2,00,63,471 and claimed an amount of Rs. 1,33,92,500/ as deduction u/s 54B of IT Act and deduction of Rs.41,49,611 u/s 54F of IT Act and declared LTCG of Rs.25,21,359/-. The assessment was completed by disallowing the deduction of Rs.1,33,92,500 and assessing the income from LTCG at Rs.1,59,13,860. The Assessee had furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd prejudicial to the interest of revenue, requiring an intervention to cure the order made erroneous and prejudicial to the interest of revenue. In order to remedy the said error in the order of assessment in the instant case made on 28.12.2018 for the assessment year 2016- 17, the recourse would be to resort to provisions of sec263 of the Act. Accordingly, the order of the AO dated 28.1 2.2018 for the assessment year 2016-17 in the case of the captioned assessee is, set aside, in exercise of the powers vested in me uls.263 of the Act. 6. The Assessing Officer, is hereby, directed to re-do the assessment afresh after verification of the facts discussed above and after due satisfaction in accordance with law, may pass fresh asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s.56(2)(vii)(b) of the Income Tax Act, 1961. The assessee neither appeared nor filed any details in response to show-cause notice. Therefore, the PCIT has passed order u/s.263 of the Act, and set aside assessment order passed by the Assessing Officer. We have gone through order passed by the learned PCIT and find that the PCIT has given one opportunity of hearing to the assessee in contravention of settled legal principles, as per which, it is requirement of law that reasonable opportunity of hearing must be given to the assessee before passing an order. Since, the learned Principal CIT has not given sufficient opportunity of hearing to the assessee, we are of the considered view that appeal needs to be set aside to the file of the PCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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