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Facts
The assessee challenged a PCIT order passed under Section 263 of the Income Tax Act, 1961, arguing that the original assessment order under Section 143(3) was based on due inquiries and lacked no inquiry regarding penny stock trading. However, the assessee had failed to appear or respond to the notice issued by the PCIT under Section 263, which led to the impugned order.
Held
The Tribunal observed that the factual arguments made by the assessee's AR were not presented before the PCIT due to the assessee's non-appearance and failure to respond to the Section 263 notice. Consequently, the Tribunal decided to remit the matter back to the PCIT, Noida, to provide the assessee a proper opportunity to be heard and respond to the notice, enabling the PCIT to pass a fresh order.
Key Issues
Whether the PCIT's order under Section 263 was valid given the assessee's non-appearance, and if the assessee should be granted an opportunity to present their case before the PCIT.
Sections Cited
Section 263, Section 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHES : E : NEW DELHI
Before: SHRI G.S. PANNU, HON’BLE & SHRI ANUBHAV SHARMA
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER Assessment Year: 2012-13 Om Prakash Gupta, Vs Pr.CIT, B-1/150, New Kondly, Noida, UP. Delhi 110096 PAN: AAOPG1505A (Appellant) (Respondent) Assessee by : Shri Shantanu Jain, Advocate Shri Gurjeet Singh, CA Revenue by : Shri Subhra Jyoti Chakraborty, CIT-DR Date of Hearing : 08.05.2024 Date of Pronouncement : 08.05.2024 ORDER PER ANUBHAV SHARMA, JM:
Heard and perused the record.
At the time of hearing it came up that the assessee has challenged the order u/s. 263 passed by PCIT, Noida, raising various grounds alleging erroneous exercise of the jurisdiction u/s. 263 of the Income Tax Act, 1961 by the PCIT, Noida. The ld. AR has tried to make out a case that the assessment order dated 27.12.2019 passed u/s. 143(3) of the Act was based on due inquiries and there was no case of lack of inquiry with regard to penny stock trading by the assessee.
However, we find that all the factual aspects regarding the raising of inquiry by AO and other submissions of AR do not form part of submissions of the assessee before PCIT, Noida, as assessee had failed to appear and respond to the notice u/s. 263 of the Act.
That being the case, we considered it an appropriate case to remit the issues on merits to the files of PCIT, Noida, to give an opportunity of hearing to the assessee for responding to the notice u/s. 263 and pass an order afresh.
The appeal be considered allowed for statistical purposes. Order pronounced in the open court on 08.05.2024.