This case involves an appeal filed by Sunil Kumar Agarwal, a businessman from Meerut, challenging the revisionary order under section 263 of the Income Tax Act, 1961 by the Principal Commissioner of Income-tax (PCIT), Ghaziabad for the assessment year 2015-16.
The case was heard before the Income Tax Appellate Tribunal, Delhi Bench ‘H’, presided over by Judicial Member Shri Saktijit Dey and Accountant Member Shri M. Balaganesh. The core issue was the adequacy of the opportunity provided to the appellant during the revision proceedings under section 263.
Representing the appellant, Shri Gautam Jain, Advocate, argued that the PCIT failed to provide a proper hearing post the initial show cause notice, thereby violating the principles of natural justice. Despite the appellant’s submissions in response to the show cause notice, the PCIT proceeded with the order without further engagement.
The tribunal, after considering the submissions from both sides, found significant merit in the appellant’s claims. The order by the PCIT was deemed to have been passed without proper hearing, leading to a violation of the principles of natural justice. Consequently, the tribunal set aside the PCIT’s order and remanded the case back for de novo adjudication with directions to ensure a fair hearing.
The decision underscores the importance of adherence to procedural fairness in tax assessments and revisions. The tribunal’s ruling not only provides relief to Sunil Kumar Agarwal but also sets a precedent on the necessity of providing adequate opportunities for representation in similar cases.
The final judgment was pronounced in the open court on May 2, 2023, allowing the appeal for statistical purposes and emphasizing the need for a reasoned order by the PCIT after considering all submissions.
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