DAMODARAN SURESH,GOBICHETTYPALAYAM vs. ITO,WARD-2(1), ERODE

- 2 - 2 The only issue in this appeal of assessee is as against the revision order passed by PCIT u/s.263 of the Act revising the assessment framed by AO u/s.143(3) of the Act dated 31.12.2019.

I have heard rival contentions and gone through facts and circumstances of the case. The ld.counsel for the assessee pointed out that the revision order passed by the PCIT is ex-parte. He took me through para 4 which reads as under:- “4. In response to the above show cause notice, the case was posted for hearing on 21/03/2022. The assessee was given opportunity to appear in person or through their authorized representative or to file written submissions. However, none appeared for the hearing, nor any written submissions were received in this office. Therefore, the present proceeding initiated u/s.263 of the Act is disposed off based on the material available on record.”

I noted that the assessee is an individual engaged in the business of running an electronic shop by name M/s. Sumi Electronics, who has made cash deposits during demonetization period in its bank account in Specified Bank Notes amounting to - 3 - Rs.10,94,634/-. The AO has not verified the violation of provisions of section 40A(3) of the Act because the assessee has made payment in cash in excess of Rs.20,000/- to various parties as noted by PCIT amounting to Rs.85,03,246/-. Hence, the PCIT issued show cause. Since none was present before PCIT, he passed ex-parte order. I noted that the PCIT should have allowed opportunity of being heard to the assessee and hence, I set aside the order of PCIT and remand the matter back to his file for fresh adjudication. Accordingly, the appeal of the assessee is allowed for statistical purposes.

In the result, appeal filed by the assessee is allowed for statistical purposes.