9911796707
TMI Blog2010 (3) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirming the order passed by CIT(A) in annulling the assessment order made u/s. 158BD r.w.s. 144 of the I.T. Act, though the definition of agent in section 163 of the Income-tax Act is an inclusive definition? A search was carried out on 30.04.1998 in the Khadkhad Group cases. During the course of search, it was noticed that the assessee and his family members had advanced loans to various persons through Khadkhad Group. The respondent-assessee, being a non-resident Indian, a notice came to be issued on 07.01.1999 under Section 158BD of the Act on Shri Ashok B. Shah, Power of Attorney Holder of the assessee. Initially neither the assessee nor his Power of Attorney responded to the notice. However, subsequently, the Power of Attorney along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treat as an agent. The Tribunal found that, as a matter of fact, no such opportunity had been given to Shri Ashok B. Shah and accordingly dismissed the appeal and upheld the order of Commissioner (Appeals). Mr.M.R.Bhatt, learned Senior Standing Counsel appearing for the appellant Revenue, submitted that notice had been issued in the name of the assessee and served on Shri Ashok B. Shah as Power of Attorney holder only. That Shri Ashok B. Shah had appeared in response to the notice and did not raise any objection against being treated as an agent. In the circumstances, it is deemed that opportunity of hearing had been granted to him. Hence, the Tribunal had erred in confirming the order passed by the Commissioner (Appeals), though the defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (1) of section 9 of this Act.] (2) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the [Assessing] Officer as to his liability to be treated as such. Sub-section (2) of Section 163 of the Act lays down that prior to treating a person as the agent of a non-resident, he is required to be given an opportunity of hearing by the Assessing Officer as to his liability to be treated as such. In view of the provisions of Section 246(1)(d), against an order made under Section 163 of the Act treating the assessee as the agent of a non-resident appeal lies before the Commissioner (Appeals). Thus, it is apparent that the statute contemplates making of an order under Section 163 of the Act t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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