TaxTMI 
TaxTMI 
TaxTMI 
2021 (10) TMI 108
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....O.) dated 11.12.2018 under section 143(3) of the Act concerning Assessment Year 2016- 17 was sought to be set aside for reframing the assessment in terms of supervisory jurisdiction. 2. As per its grounds of appeal, the assessee has challenged the assumption of jurisdiction by the PCIT under section 263 of the Act on the ground that the assessment order under revision is neither erroneous nor prejudicial to the interest of the revenue. As a corollary, the assessee has sought to impugn consequent revisional order passed by PCIT under section 263 of the Act. 3. Briefly stated, the assessee filed its return of income for the A.Y. 2016-17 in question inter alia claiming deduction under section 54F of the Act. The return of income filed by the....
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....d satisfied. 5. None attended for the assessee in response to the show cause notice but the PCIT proceeded with the revisional proceedings and alleged that the A.O. has not conducted proper enquiry with reference to the deduction claimed under section 54F of the Act. The original assessment was set aside on the above point and the A.O. was directed to pass a fresh assessment in terms of directions in the revisional order. 6. Aggrieved by the aforesaid action of the PCIT, the assessee is in appeal before the Tribunal agitating supervisory jurisdiction usurped by the PCIT under section 263 of the Act. 7. When the matter was called for hearing before the Tribunal, the learned Counsel for the assessee raised several points to assail the acti....
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....n the same date at earlier point of time i.e. 11.15 A.M and hence even if notice could be served, still such notice would have served no purpose at all and would amount to no opportunity. No further notice was issued thereafter. It was contended that the opportunity granted cannot be illusionary but has to be real and effective to enable the assessee to defend its cause. The PCIT has neither assured service of notice nor has provided any opportunity as narrated supra. 9. It was thus strongly urged that in the absence of opportunity of hearing, the revisional order is required to be quashed at the threshold on this ground itself. 10. Adverting to the merits of the issue raised in the show cause notice, the Counsel for the assessee pointed ....
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....karjuna Rao (2016) 161 ITD 721 (Vskp.) - ACIT vs. Subhash Sevaram Bhavnani (2012) 23 taxmann.com 94 (Ahd.) - CIT vs. J.R. Subramanya Bhatt (1987) 165 ITR 571 - Hill Queen Investment (P) Ltd. vs. Pr. CIT (2021) 62 CCH 70 (Kol. Trib.) - Padam Kumar Jain vs. CIT (2020) 59 CCH 209 (Ranchi) - Magic Landcon LLP & Anr. Vs. Pr. CIT (2020) 204 TTJ 785 (Del) - Karthik Financial Services Ltd. vs. CIT (2019) 55 CCH - ITO vs. K.C. Gopalan (2000) 162 CTR 566 (Ker.) - Yatin Prakash Telang vs. ITO (2018) 171 ITD 705 (Mum.) - Magic Landcon LLP & Anr. Vs. Pr. CIT (2020) 204 TTJ 785 (Del.) - Pr. CIT vs. Delhi Airport Metro Express P. Ltd. (2017) 398 ITR 8 (Delhi) - Mumbai ITAT in Narayana Tatu Rane vs. ITO - ITA No.2690/Mum/2016 - (2016)....
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....is plausible in law, such view cannot be substituted by the view of the superior authority and the order passed cannot be branded as erroneous per se. Therefore, in the absence of any 'error' in the assessment having regard to the allowability of section 54F, the enquiry directed by the PCIT are superfluous and without authority of law. Such action of the PCIT cannot be said to be within the realm of revisional jurisdiction under section 263 of the Act. We thus find that the action of the PCIT is without authority of law both at the time of assumption of jurisdiction as well as at the time of passing revisional order. Revisional order is thus liable to be quashed on this score. 14. We now also advert to the vehement opposition on behalf of....
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....order becomes null and void. Once it is concluded that the order in question is null and void, it is not for the adjudicating authority to advise the Commissioner as to what should he do. He is always at liberty to do whatever action he can take in accordance with the law, but a life to null and void order by remitting it back to the Commissioner for giving a fresh opportunity of passing the order after giving the assessee an opportunity of hearing cannot be given. In a case where it is possible for the Commissioner to pass a fresh order at this stage in accordance with the scheme of the Act, he can very well do so but in case the time limit for passing such order has already expired, such time limit cannot be extended by directing him to p....