TaxTMI 
TaxTMI 
2018 (3) TMI 155
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.... the circumstances of the case.?" 3. The assessee for the AY 2007-08 was issued with notice by the CIT under Section 263 of the Income Tax Act, 1961 ('the Act') on 6.12.2012. The order stated that the sum of Rs. 1973.59 lacs, reflected for the year as provisional for warranty/promise obligation was added by the AO without enquiry as to whether such deduction was calculated on the basis of a scientific method. The assessee/appellant resisted the notice. During the course of the proceedings, the CIT (A) provided a ledger extract from the account of Tuticorin and Taral in March, 2013. The assessee submitted its response to these materials protesting that apart from the ledger copy, the documents indicated statement of one Mr. Praveen....
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....oceed on an issue, upon which notice has not been given to the assessee, the Court sounded a note of caution in the following terms: "11.5. The judgment of the Supreme Court rendered in CIT Vs. Amitabh Bachchan, (2016) 384 ITR 0200 (SC), on which reliance was placed by the learned counsel for the Revenue, to our minds, does not articulate a principle, which is any different from what is stated hereinabove by us. This is, clearly, evident, if, one were to have regard to the observations made in paragraph 11 of the judgement. For the sake of convenience, the same are extracted hereafter : 11. It may be that in a given case and in most cases it is so done a notice proposing the revisional exercise is given to the assessee i....
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....nt order, albeit, after giving the Assessee an opportunity of being heard, and after making and causing such enquiry to be made, as may be deemed necessary. In our opinion, failure to put to the Assessee areas of concern and/or objection and underlying material, if any, that the DIT may have in his possession would turn the exercise of granting an oral hearing an empty formality. xxxxxx xxxxxx xxxxxx 11.6. A close scrutiny of the facts obtaining in the aforementioned judgement of the Supreme Court would show that the reason the appeal of the Revenue was allowed, was that, the record did not show that the revisional authority had not given an opportunity to the Assessee to controvert, the facts on the basis of which it had concluded th....
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.... Aggarwal. Having regard to these materials the assessee demanded that the copy of the statement be provided to it. Concededly that statement was not provided. The revisional order of the CIT proceeds to record this aspect and directs a fresh enquiry by the AO in the following terms:- "I have considered the matter. The A.O. has not applied his mind to this issue and has not examined the method by which provision for warranty has been calculated. A simple estimation would result in grant of deduction which should have been disallowed. I, therefore. hold that the assessment is erroneous and has caused prejudice to the interest of revenue. In view of these facts, I set aside the assessment and direct the A.O. to reframe the assess....