2021 (12) TMI 1217

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....t petition, challenge is made to the impugned order passed under Section 263 of the Income Tax Act, 1961, (for short, 'the IT Act'), by the respondent-Principal Commissioner of Income-Tax (Central), Visakhapatnam, wherein the Principal Commissioner directed as follows: "In view of the above, by the powers vested u/s 263, I therefore, revise the Order and direct the Assessing Officer to redo the assessment after conducting a joint meeting with the Investigation Wing as per the procedure laid down in the Instructions issued by the CBDT. It is clarified here that at the time of reassessment to be done in pursuance of this order the Assessing Officer should address only the issues which have not been taken up in the earlier assessment ....

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....ion 263 of the IT Act empowers the Principal Commissioner to pass orders enhancing, modifying, cancelling or directing fresh assessment, in the event he considers that an order passed by the Assessing Officer is erroneous and prejudicial to the interest of the revenue. However, prior to arriving at such finding, it is incumbent on the Principal Commissioner to give an opportunity of hearing to the assessee concerned. 6. The Principal Commissioner has not extended the opportunity of personal hearing or gave adjournments in the matter, in view of the prevailing pandemic conditions, and proceeded to pass the impugned order to redo the assessment. 7. In this factual backdrop, we are of the opinion that there is a clear infraction of law r....

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....ch of principles of natural justice. 10. In this regard it may be appropriate to refer the decision of the Hon'ble Apex Court in Commissioner of Income Tax, Mumbai v. Amitabh Bachchan 2016 (11) SCC 748, wherein it has been observed as follows: "What is contemplated by Section 263, is an opportunity of hearing to be afforded to the assessee. Failure to give such an opportunity would render the revisional order legally fragile not on the ground of lack of jurisdiction but on the ground of violation of principles of natural justice." 11. Hence, we are of the opinion that the procedure followed by the Principal Commissioner in passing the impugned order without giving an opportunity of hearing to the assessee is in clear violatio....