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2023 (11) TMI 29 - ITAT SURATRevision u/s 263 - Provision for bad debts/ Bad-debts - As per CIT AO has not gone through into the write off of Desire Pen and Stationery where even the PAN number is not given by the assessee-company - HELD THAT:- Hon`ble Supreme Court in the case of TRF Ltd [2010 (2) TMI 211 - SUPREME COURT] has stated that the position of law is well settled” “After 1 April 1989, for allowing deduction for the amount of any bad debt or part thereof under section 36(1)(vii) of the Act, it is not necessary for assessee to establish that the debt in fact has become irrecoverable, it is enough if bad debt is written off as irrecoverable in the books of accounts of assessee”. Therefore, we note that assessing officer has taken a possible view to allow this claim, therefore order passed by the assessing officer is neither erroneous nor prejudicial to the interest of revenue so far issue of ‘bad debts’ is concerned. Examine the new issue - Additions to the fixed assets during the financial year which have been shown along with work in progress - From the above judgment of Amitabh Bachchan [2016 (5) TMI 493 - SUPREME COURT] it is vivid that what is contemplated by Section 263, is an opportunity of hearing to be afforded to the assessee. Failure to give such an opportunity would render the revisional order legally fragile not on the ground of lack of jurisdiction but on the ground of violation of principles of natural justice. We note that to examine the new issue, namely, the additions to the fixed assets, the ld PCIT has issued notice to the assessee, u/s 263 - In compliance to the said notice, the assessee has replied, however, PCIT did not consider the reply of the assessee at all, and ignored the reply of the assessee. Therefore, without giving an opportunity of hearing to the assessee, ( in respect of said new issue) the CIT has passed the order, hence order passed by the ld PCIT is not in accordance with the mandatory provisions of section 263 of the Act, therefore we quash the order of ld PCIT. Appeal filed by the Assessee is allowed.
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