2022 (7) TMI 1534 - AT - Income Tax

Tribunal Grants Assessee Another Hearing Opportunity in Principal CIT Revision Jurisdiction Challenge.

The ITAT Chennai allowed the assessee's appeal, challenging the revisional jurisdiction of the Principal CIT. The Tribunal instructed the Principal CIT to ... Revision u/s 263 - CIT-DR pleaded for dismissal of the appeal on the ground that no submissions were made by the assessee during revisional proceedings also - HELD THAT:- Upon perusal of impugned order, it could be seen that the assessment order was subjected to revision on certain points which are enumerated in para-2 of the impugned order. Though the assessee was put to show-cause, however, the assessee failed to make any submissions. Accordingly, the assessment was set aside and AO was directed to redo the assessment. Aggrieved the assessee is in further appeal before us. In one of the grounds, the assessee has pleaded that the assessee sought adjournment and the order was passed without sufficient opportunity of hearing. Though we concur with the submissions of CIT-DR that the assessee has remained negligent before revisional authority, however, keeping in view the principle of natural justice, we direct Pr. CIT to grant another opportunity of hearing to the assessee to defend its case and take a fresh call on the revision. Pr. CIT is at liberty to proceed with the revision in case the assessee fails to substantiate its case. The appeal stand allowed for statistical purposes. The Appellate Tribunal ITAT Chennai allowed the appeal of the assessee contesting the revisional jurisdiction exercised by the Principal Commissioner of Income Tax. The Tribunal directed the Principal Commissioner to grant another opportunity of hearing to the assessee before proceeding with the revision. The appeal was allowed for statistical purposes. (Judgement dated 21st July, 2022)