|The Tax Publishers2020 TaxPub(DT) 5471 (Kol-Trib)
INCOME TX ACT, 1961
Since additional issues for which Pr. CIT had given direction to AO for fresh assessment were neither a subject-matter of SCN nor an opportunity was given by Pr. CIT before passing impugned order, therefore, order of Pr. CIT was modified and AO was directed not to give effect to additional issues and to give effect to the order of Pr.CIT only on the issue which was dealt by him in SCN in accordance with law after hearing assessee.
Revision under section 263 - Erroneous and prejudicial order - Pr.CIT directed fresh assessment on additional issues not being subject-matter of show-cause notice under section 263 -
Pr. CIT issued show-cause notice wherein he brought to the notice of assessee his intention to exercise his revisional jurisdiction under section 263 in respect of asessment order, dated 21-3-2016 and pointed out only one issue, i.e., in respect of advance taken by assessee's employee which was shown in the balance sheet as liability in place of asset. Thereafter, not being satisfied with assessee's reply, Pr. CIT passed order, setting aside assessment order and directing fresh assessment on certain additional issues. Held: Additional issues for which Pr. CIT had given direction to AO for fresh assessment were neither a subject-matter of SCN nor an opportunity was given by Pr. CIT before passing impugned order. There was no mention about Pr. CIT asking any question to assessee regarding those additional issues to assessee. Therefore, order of Pr. CIT was modified and AO was directed not to give effect to additional issues and to give effect to the order of Pr.CIT only on the issue which was dealt by him in SCN in accordance with law after hearing assessee.
Relied:CIT v. Amitabh Bachan (2016) 384 ITR 200 (SC) : 2016 TaxPub(DT) 2291 (SC).
FAVOUR : Partly in assessee's favour.
A.Y. : 2013-14
IN THE ITAT, KOLKATA BENCH
P.M. JAGTAP, V.P. & A.T. VARKEY, J.M.
Alpha National Trading Co. v. Pr. CIT
I.T.A. No. 1007/Kol/2018
4 December, 2020
Appellant by: S.M. Surana, Advocate
Respondents by: Imokaba Jamir, Commissioner
A.T. Varkey, J.M.
This is an appeal preferred by the assessee against the order of learned Principal Commissioner-10, Kolkata, dated 20/23-3-2018 for 2013-14 passed under section 263 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act').
2. At the outset the learned Authorised Representative of the assessee Shri S.M. Surana, Advocate drew our attention to the fact that the learned Principal Commissioner had issued a show cause notice, dated 12-1-2018 which is placed at page 1 of PB wherein he had raised only one issue i.e. in respect of salary of one of its employees namely Shri Angad Singh which question is discernible on perusal of the show cause notice (SCN) which is reproduced as under for ready reference :--
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