SANTHOSH GEORGE, vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX

JUDGMENT The present writ petition has been filed impugning Ext.P5 order passed by the Principal Commissioner of Income Tax. The main contention of the learned counsel for the petitioner is that the entire contract receipts have been assessed as income and the assessment order has been issued under Section 143(1) of the Income Tax Act, 1961 against which, the petitioner filed rectification application. However, the rectification application was not considered and came to be rejected to which, the petitioner filed revision before the Principal Commissioner under Section 264 of the Income Tax Act. However without affording an opportunity of hearing, the said revision has came to be dismissed by Ext.P5. 2. In response to the writ petition, a counter affidavit has been filed by the Principal Commissioner of the Income Tax Department. Paragraph 5 of the said counter affidavit reads as under:- “5. It is submitted that this respondent now realises that the rejection of the revision petition citing certain lapses on the part of the assessee and without adverting to the merits of the case is not proper. It would appear that the mistake committed by the assessee in choose the wrong return form and showing the entire contract receipts under the head 'income from other sources' would have led to the fixation of the gross contract receipts as the total income. Whatever may be the reason, the fact remains that the entire contract receipts have been treated as the taxable income of the petitioner. This mistake needs to be rectified. This can be done by considering the petitioner's grievance again u/s 264 of the IT Act. If the Hon'ble Court is pleased to set aside the Exhibit-P5 order with a direction to re-do the same after affording the petitioner a proper opportunity of being heard, the grievance of the petitioner can be addressed and his correct taxable income can be fixed. It is prayed that the Hon'ble Court may be pleased to do so.” Considering the said stand of the respondents, the writ petition is allowed. Ext.P5 order is set aside. The matter is remitted back to the file of the first respondent to decide the revision petition of the petitioner in accordance with the law afresh. The petitioner should be afforded an opportunity of hearing by the first respondent.

Let notice of hearing be issued to the petitioner by the Principal Commissioner of the Income Tax Department and on receipt of such notice, the petitioner should appear before the Principal Commissioner and make submissions. DINESH KUMAR SINGH

JUDGE DCS/01.12.2023