TANTIA AGROCHEMICALS PVT. LTD.,KOLKATA vs. PCIT-2, KOLKATA, KOLKATA

PDF · subscribers
ITA 1178/KOL/2016Status: DisposedITAT Kolkata08 February 2017AY 2011-20123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not afforded a proper opportunity of being heard by the CIT. Consequently, the CIT's order was set aside, and the case was remanded for fresh consideration.

What were the facts?

The assessee's assessment order for AY 2011-12 was reviewed by the Principal CIT under Section 263. The CIT believed the AO's order was erroneous and prejudicial to revenue, issuing a show cause notice. The assessee requested an adjournment for the hearing, which was disregarded.

What were the issues?

Whether the assessee was given a proper opportunity of being heard before the CIT passed an order under Section 263. The validity of the CIT's order passed without considering the assessee's adjournment request.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH : KOLKATA

Before: Hon’ble Sri N.V.Vasudevan, JM & Dr.Arjun Lal Saini, AM]

ORDER

Per N.V.Vasudevan, JM

1.

This is an appeal by the Assessee against the order dated 28.03.2016 of Pr.CIT- 2, Kolkata passed u/s 263 of the Income Tax Act, 1961 (Act).

2.

The Assessee is a company engaged in the manufacturing of starch. For A.Y.2011- 12 the AO passed order of assessment u/s 143(3) of the Act dated 20.01.2014. The CIT in exercise of his powers u/s 263 of the Act was of the view that the aforesaid order of AO was erroneous and prejudicial to the interest of the revenue. He therefore issued a show cause notice u/s 263 of the Act. According to the impugned order the show cause notice was sent to the assessee and opportunity was afforded to the assessee to reply to the show cause notice. The appointed date of hearing was 22.03.2016. In the impugned order the CIT it has observed that none appeared on the appointed date nor any written submissions were filed. The CIT thereafter proceeded to hold that the order of AO was erroneous. CIT accordingly directed the AO to examine the admissibility of the claims set forth in the show cause notice u/s 263 of the Act after affording opportunity of being heard to the assessee. 3. Aggrieved by the order of CIT the assessee has filed the present appeal before the Tribunal.

2 Tantia Agrochemicals Pvt.Ltd. A.Yr.2011-12 4. At the time of hearing the ld. Counsel for the assessee brought to our notice that on 22.03.2016 when the case was fixed for hearing before CIT, the assessee had made a request for an adjournment. The letter dated 22.03.2016 filed in the office of the Principal CIT and acknowledged by the said office was filed before us. The impugned order of the CIT was passed on 28.03.2016 disregarding the material available on record. We are satisfied that the assessee did not have proper opportunity of being heard before CIT. We therefore set aside the order of CIT and remand the case to the CIT for fresh consideration after affording the assessee opportunity of being heard. For statistical purposes the appeal of the assessee is treated as allowed.

5.

In the result the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the Court on 08.02.2017.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →