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Judgment
The present appeal by the Revenue is directed against the order dated 21st December, 2021 of the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (ITAT) allowing the Assessee’s appeal i.e. ITA No.17/CTK/2021 whereby the Assessee had challenged an order dated 1st March, 2021 passed by the Principal Commissioner of Income Tax-I, Bhubaneswar (Pr.CIT) initiating proceedings under Section 263 of the Income Tax Act, 1961 (IT Act).
Admit.
The following question is framed for consideration by this Court:
“Was the ITAT justified in quashing the impugned order of the Pr.CIT on the grounds of violations of principles of natural justice without reviving the proceedings before the Pr.CIT for compliance with that requirement?
A perusal of the impugned order of the ITAT reveals the ground that what weighed with the ITAT to quash the order of the Pr.CIT was that sufficient opportunity had not been granted to the Assessee to place the details to support the original assessment order of the Assessing Officer (AO).
It is seen that the ITAT did not consider it appropriate, while setting aside the order of the Pr.CIT, to revive the proceedings before the Pr.CIT to provide such opportunity to the Assessee. That should have been the appropriate course to follow since all that the Assessee was seeking at that stage was for further time to produce the relevant documents and materials.
In that view of the matter, the impugned order of the ITAT is interfered with to the extent that while the order dated 1st March, 2021 of the Pr.CIT under Section 263 of the IT Act will remain set aside, the revisional proceedings under Section 263 of the IT Act will revive before the Pr.CIT an00d will be listed there on 10th April, 2023. On that date the Respondent-Assessee will appear and produce all the relevant documents/materials. The Pr.CIT will then proceed in accordance with law and pass a fresh order within a period of two months thereafter.
The Court clarifies that it has not expressed any view on the merits. The question of law is answered in the above terms.
The appeal is accordingly disposed of. An urgent certified copy of this order be issued as per rules.
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