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TMI Blog2019 (11) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... a manner other than as prescribed under the Act, and is not in any way connected to the applicability of Sec.40(a)(ia) of the Act or the deduction of TDS u/s.194C(6) of the Act. A perusal of Section 263(1) of the Act clearly shows that the words used are after giving the assessee an opportunity of being heard . In the present case, the directions given by the ld.PCIT to the Assessing Officer is not an issue, that has been put to the assessee or one which has been done after giving the assessee an opportunity of being heard. This being so, his direction is unsustainable and consequently, the order passed u/s.263 of the Act becomes unsustainable and consequently quashed. - I.T.A.Nos.1325 &1326/Chny/2017, 3348 & 3349/Chny/2018 And C.O. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sented on behalf of the Revenue. 3. Since the assessee pertaining to Assessment Year is common in all these appeals as well as Cross Objections, we heard these appeals and Cross objections together and dispose of the same by this common order. 4. It was submitted by ld.AR the original assessments u/s.143(3) of the Act for assessment year 2012-13 came to be completed on 16.12.2014, and for the assessment year 2013-14 on 27.03.2015. It was submitted that assessee is in the business of doing lorry transport. It was a submission that ld. PCIT had invoked his power u/s.263 of the Act and issued a show cause notice on 13.02.2017 for both the assessment years wherein the issue raised was as follows:-- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was submitted by ld.AR that the issue raised in the show cause notice in respect of hire charges payments debited in the Profit and Loss A/c, paid by way of Bearer Cheques and not by way of Account Payee cheques. In reply to the said show cause notice, the assessee had given a detailed reply dated 06.03.2017 wherein the assessee had explained the reasons for issuing the Bearer Cheques and the practicality of the payment as also various case laws cited on the issue. It was a submission that after considering the reply of the assessee, the ld. PCIT passed an order u/s.263 of the Act on 30.03.2017 for the assessment year 2012-13 and on 27.03.2017 for the assessment year 2013-14 wherein for the assessment year 2012-13 in par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and allow the same, if found genuine, and if it was allowed, then the applicability of Section 40(a)(ia) of the Act was to be verified. It was submitted by ld.AR that this issue was not an issue as mentioned in the show cause notice. It was also a submission that a perusal of the provisions of section 263(1) of the Act, specifically provides for an opportunity of being heard to the assessee. It was a submission that the assessee has not been served with show cause notice and the assessee having not been heard by the ld.PCIT u/s.263 of the Act in respect of the issue, as regards direction for verification the order passed u/s.263 of the Act directing the Assessing Officer to do verification was unsustainable. 5. In reply, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Sec.40(a)(ia) of the Act or the deduction of TDS u/s.194C(6) of the Act. A perusal of Section 263(1) of the Act clearly shows that the words used are after giving the assessee an opportunity of being heard . In the present case, the directions given by the ld.PCIT to the Assessing Officer is not an issue, that has been put to the assessee or one which has been done after giving the assessee an opportunity of being heard. This being so, his direction is unsustainable and consequently, the order passed u/s.263 of the Act becomes unsustainable and consequently quashed. 7. In the result, the appeals of the Assessee in ITA Nos.1325 1326/chny/2017 stand allowed. 8. As we have quashed the order passed u/s.263 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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