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2024 (6) TMI 1023 - AT - Income TaxIssues Involved: 1. Legality of the order u/s 263 of the I.T. Act. 2. Alleged non-consideration of assessee's submissions by PCIT. 3. Ex-parte dismissal of appeal without providing a proper opportunity of being heard. 4. Jurisdiction assumption u/s 263 by PCIT. 5. Direction to make an addition of Rs. 94,52,860 based on clerical mistakes. 6. Calculation of deficit on the Royal Home Town project. Summary: 1. Legality of the order u/s 263 of the I.T. Act: The core issue was whether the assessment order was erroneous and prejudicial to revenue, warranting the assumption of jurisdiction by the PCIT u/s 263 of the Act. The Tribunal held that the PCIT had rightly assumed jurisdiction as the original order was found legally valid, and the matter was remanded for rectification of computational mistakes. 2. Alleged non-consideration of assessee's submissions by PCIT: The appellant argued that the PCIT did not verify the portal for submissions and ignored the responses. However, the Tribunal noted that the PCIT had given sufficient opportunities to the appellant, which were not availed, and thus, the PCIT's refusal to interfere with the original findings was justified. 3. Ex-parte dismissal of appeal without providing a proper opportunity of being heard: The Tribunal found that the impugned order was not passed ex-parte as the appellant was given multiple opportunities to present their case, which they failed to utilize. Therefore, the grounds of appeal regarding the ex-parte dismissal were dismissed. 4. Jurisdiction assumption u/s 263 by PCIT: The Tribunal did not find any dispute regarding the assumption of jurisdiction by the PCIT u/s 263. It was inferred that the original order u/s 263 was in accordance with the law, and the matter was correctly remanded for revision/rectification. 5. Direction to make an addition of Rs. 94,52,860 based on clerical mistakes: The appellant contended that the PCIT's direction to add Rs. 94,52,860 was due to a clerical error. The Tribunal acknowledged the dispute over the apportionment of expenses among projects and noted that the aggregate expenses claimed were consistent. The PCIT should have relied on one set of figures and verified the original bills and vouchers for accuracy. 6. Calculation of deficit on the Royal Home Town project: The Tribunal found merit in the appellant's argument that the PCIT's calculation led to an aggregate expenditure exceeding the claimed amount by Rs. 1,32,34,888. The Tribunal set aside the impugned order and remitted the issue back to the PCIT for a fresh decision, ensuring reasonable opportunities for the appellant to present their case. Conclusion: The appeal was partly allowed, with the Tribunal setting aside the impugned order and remitting the issue back to the PCIT for a fresh decision, emphasizing the need for reasonable opportunities for the appellant to address the computational errors.
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