Sh. Vikram Jain, Ludhiana V. PCIT -1, Ludhiana

ITA 379/CHANDI/2022

AI Insights

This case involves an appeal by Shri Vikram Jain against the order of the Ld. PCIT, Ludhiana-1, which pertained to the Assessment Year 2012-13. The primary contention was the initiation of proceedings under section 263 of the Income Tax Act, 1961, by the PCIT, which the appellant argued was without proper jurisdiction and thus void ab initio. Additionally, it was argued that the PCIT erred in assuming jurisdiction and passing the revisionary order despite the Assessing Officer having made adequate inquiries and verifications. The appellant also contested the lack of proper service of notice under section 263(1), claiming a violation of the principles of natural justice. The tribunal found that the PCIT had dismissed the appeal ex-parte based on non-prosecution without considering the sufficient reasons for the assessee's non-appearance, thus remitting the matter back to the PCIT for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135497 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 25-04-2022
• Other Referred Cases: S. Velu Palandar Vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order; Principle of natural justice; Set aside
• Section: 263

Judgement Text

आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “बी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ᮰ी आकाश दीप जैन, उपा᭟यᭃ एवं ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA NO. 379/Chd/2022 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 Shri Vikram Jain 4617 Sunder Nagar, Ludhiana, Punjab-141008 बनाम The PCIT, Ludhiana-1 ᭭थायी लेखा सं./PAN NO: AFSPJ3730P अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Ashwani Kumar, CA राज᭭व कᳱ ओर से/ Revenue by : Smt. Kusum, CIT, DR सुनवाई कᳱ तारीख/Date of Hearing : 20/09/2023 उदघोषणा कᳱ तारीख/Date of Pronouncement : 17/10/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. PCIT, Ludhiana-1 dt. 25/03/2022 pertaining to Assessment Year 2012-13 wherein the assessee has raised the following grounds of appeal: 1. On the facts and circumstances of the case and in law, the PCIT-1, Ludhiana has erred in initiating proceedings u/s 263 of the Income Tax Act, 1961 by wrongly assuming jurisdiction u/s 263, hence the order passed by the PCIT u/s 263 of the Income Tax Act, 1961 is bad in law and void-ab-initio. 2. Without prejudice to ground no. 1 above, on the facts and circumstances of the case and in law, the Ld. PCIT, Ludhiana has erred in assuming jurisdiction and passing the revisionary order u/s 263 of the Income Tax Act, 1961 inspite of the fact that the Ld. A.O. has made adequate enquiries and verification of documents and has passed elaborate order stating complete facts of the case. The A.O. has taken one permissible view and order passed by the A.O is neither erroneous nor prejudicial to the interest of revenue, hence the order of PCIT should be set aside. 3. The notice u/s 263(1) was never served upon the assessee through E-mail or through physical notice. The PCIT-Ludhiana has issued the notice u/s 263(1) without informing to the assessee or without making any effort for service of notice violating the principles of natural justice, hence the order u/s 263 should be set aside on this ground. 2 4. The assessee craves to leave, amend, alter or take additional grounds of appeal before or at the time of hearing. 2. At the outset, it is noted that the ld. Pr Commissioner of Income Tax has concluded the proceedings u/s 263 of the Income Tax Act, 1961 (hereinafter called 'the Act'), by passing an ex-parte order dated 25.03.2022 u/s 263 of the Act. It was submitted by the ld AR that the notice u/s 263 was issued by the ld PCIT on 2.03.22 without informing the assessee on e-proceedings portal. It was submitted that the assessee never knew about the issue of such notice u/s 263 wherein the hearing was fixed for 9.03.2022 since no intimation was received through e-mail or physical delivery. It was submitted that second notice was issued by the ld PCIT on 10.03.22 through e-proceedings portal and again the the assessee never knew about the issue of such notice u/s 263 and date of the hearing. It was submitted that ld PCIT thereafter passed the impugned order u/s 263 ex-parte on 25.03.22 and order was received through the ITBA Portal on email. It was accordingly submitted that the non-appearance of the Assessee before the Ld. PCIT was unintentional and beyond his control. It was prayed that keeping in view the principles of natural justice, the Assessee may be given a reasonable opportunity of hearing of the appeal before the ld. PCIT. 3. The ld. DR, on the other hand, has placed reliance on the orders of the authorities below. 4. We have heard the rival submissions and purused the material available on record. We have gone through the order of the ld. PCIT, and find that the appeal of the assessee has been dismissed by passing an ex-parte order, merely on the basis of the non-prosecution. We find that the assessee was prevented by sufficient reasons for his non-appearance before the ld. PCIT, as has been explained by him. As such, an opportunity of hearing requires to be given to the assessee to represent his case fully before the Ld. PCIT. Even otherwise, it is trite 3 [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. 5. In view of the above, finding force in the grievance raised by the Assessee, the matter is remitted to the file of the ld. PCIT, to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the ld. PCIT. All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 6. In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced in the open Court on 17/10/2023. Sd/- Sd/- आकाश दीप जैन िवŢम िसंह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा᭟यᭃ / VICE PRESIDENT लेखा सद᭭य/ ACCOUNTANT MEMBER AG Date: 17/10/2023 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar