1980 (7) TMI 9

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....tnership deed, for, even losses were allocated amongst the minors as per the profit and loss appropriation account. Since both the actions of the ITO were erroneous and prejudicial to the interests of the Revenue, a notice under s. 263 of the I.T. Act, 1961 (hereinafter referred to as " the Act "), was issued to the assessee by the Addl. Commissioner in order to assess the entire compensation in one year, as also to cancel registration. After giving the assessee an opportunity of being heard, the Addl. Commissioner by his order under s. 263 of the Act dated October 13, 1972, set aside the assessment made by the ITO and directed him to do it afresh. By a separate order under s. 263 of the Act on the same day, continuation of registration ....

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....for its opinion : I T. Case No. 43 of 1975: " (1) Whether, on the facts and in the circumstances of the case, considering that the assessee had submitted his detailed written objections and had also been given personal hearing through its partner and the express provisions of section 263(1) of the Income-tax Act, the Appellate Tribunal was right in law in holding that the principles of natural justice had been violated by the Additional Commissioner of Income-tax in not granting an adjournment of the hearing ? (2) If the answer to question No. (1) is in the affirmative whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in not remanding the case to the Commissioner for deciding th....

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....he Addl. Commissioner by passing the order. Mr. Ashok Bhan, the learned counsel for the assessee, contends that the question whether the principles of natural justice have been violated in a given case, is essentially a question of fact, which was determined by the Tribunal. We are unable to agree with this contention of the learned counsel. It is a different matter that the question referred to this court is ultimately answered in favour of the assessee and it is found that the principles of natural justice were violated, but it is difficult to hold that in every case the question of violation of the principles of natural justice is a question of fact. Keeping in view the facts and circumstances of this case, we find that the application o....