M/S GLOBION INDIA PVT LTD,COIMBATORE vs. ITO CORPORATE WARD 2, COIMBATORE

Brief facts of the case are that the assessee is a world class vaccine maker that contributes to quality of life, health and well being of animals, filed its return of income for assessment year 2013-14 on 28.11.2013 declaring loss of Rs.2,92,58,406/-.

The learned A.R for the assessee referring to sequence of events submitted that the Pr.CIT has issued show cause notice on 19.03.2018. The assessee has filed a letter on 22.03.2018 and requested for time to produce details and to file objections for proposed revision. The Pr.CIT has passed order u/s.263 on 26.03.2018. From the above sequence of events, it is very clear that the Pr.CIT has passed order without providing reasonable opportunity of being heard to the assessee and hence, the matter may be remanded back to the file of the Pr.CIT to reconsider the issue afresh in accordance with law.

The learned DR, on the other hand, strongly supporting order of the Pr.CIT submitted that the assessee has filed letter dated 22.03.2018, which was not acknowledged by the Pr.CIT and hence, on the basis of said letter, it cannot be said that the assessee has sought adjournment of hearing, because in para 4 of the Pr.CIT order, it was clearly stated that AR for the assessee appeared and made his submissions on this case.

We have heard both the parties, perused material available on record and gone through orders of the authorities below. Admittedly, the Pr.CIT has passed revision order u/s.263 in a hurry, which is evident from sequence of events brought out by the learned A.R for the assessee that show-cause notice was issued on 19.03.2018 and order was passed on 26.03.2018 within a span of one week, ignoring specific request made by the assessee by way of letter dated 22.03.2018 for adjournment of hearing to produce details and file objections. It is a well settled principles of law that reasonable opportunity of hearing should be provided to the assessee before completing any proceedings including revision proceedings. In this case, the learned Pr.CIT has hurriedly passed order u/s.263 in contravention of principles of natural justice without providing reasonable opportunity of hearing to the assessee. Therefore, we are of the considered view that the issue needs to go back to the file of the learned Pr.CIT. Hence, we remand the matter to the file of the learned Pr.CIT and direct him to reconsider the issue in accordance with law, after providing reasonable opportunity of hearing to the assessee.

In the result, appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 18th August, 2021 Sd/- Sd/- ( वी. दुगा� राव ) ( जी. मंजुनाथ ) (V.Durga Rao) ( G.Manjunatha ) $या�यक सद&य /Judicial Member लेखा सद&य / Accountant Member चे$नई/Chennai, )दनांक/Dated 18th August, 2021 DS