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TMI Blog2022 (5) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued by the authorities, the authorities are bound to dispose off proceedings in accordance with law, but such proceedings should be completed, after affording reasonable opportunity of hearing to the assessee. It is well settled law of principles of natural justice that before taking any decision, a reasonable opportunity must be given to the other side. In this case, the learned PCIT had passed order u/s. 263 by giving one date of hearing to the assessee. In our considered view, the order passed by the PCIT u/s. 263 without observing principles of natural justice is contrary to law. Therefore, we are of the considered view that appeal filed by the assessee needs to go back to the file of the learned PCIT and thus, we set aside order p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment in accordance with law. The relevant findings of the learned PCIT are as under:- In this case the assessment passed u/s. 143(3) rws. 147 of the Income Tax Act, 1961 dated 29/12/2018 was found to be erroneous for the following reasons. It is seen from the assessment record for the year under consideration the assessee had claimed expenses to the tune of Rs. 2,82,720/- towards discount allowed to the buyers. On verification, it is ascertained that the assessee had received Rs. 23,16,261/- as trade discount. This amount was not shown in the profit and loss account of the assessee. While computing the assessment, instead of adding the entire amount of Rs. 23,16,212/- received as trade discount, an amount of Rs. 1,25,000/- wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, supporting order of the learned PCIT submitted that when the assessee is not responding to show-cause notice, the PCIT has left with no choice has passed order u/s. 263 of the Act and thus, there is no reason to give another opportunity to the assessee. 5. We have heard both the parties and perused order passed by the learned PCIT u/s. 263 of the Act dated 28.01.2021. The learned PCIT has issued show-cause notice u/s. 263 of the Act, on the ground that assessment order passed by the Assessing Officer is erroneous, insofar as it is prejudicial to the interests of revenue on the issue of assessment of trade discount received by the assessee. According to the PCIT, although the assessee had received Rs. 23,16,261/- as trade discount, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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