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| The Tax Publishers2020 TaxPub(DT) 1978 (Ahd-Trib) INCOME TAX ACT, 1961
Section 263
When a ground of revision is not mentioned in the show-cause notice, then it cannot be made the basis of order for the reason that assessee would have had no opportunity to meet the point. In the instant case, claiming of depreciation on account of foreign exchange fluctuation was not mentioned as ground of revision in the show-cause notice under section 263(1) and, therefore, assessee could not get opportunity to explain the point recorded at the time of passing final order and, therefore, order of CIT under section 263 qua directing AO to pass a fresh order de novo to claim of depreciation on account of Foreign Exchange fluctuation was bad in law.
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Revision under section 263 - Erroneous and prejudicial order - Ground of revision not mentioned in show-cause notice forming the basis of order under section 263 -
Assessee challenged order of CIT in directing AO to verify the claim of depreciation being Foreign Exchange Fluctuation under section 43A despite the fact that said issue never formed part of show-cause notice under section 263(1).Held: When a ground of revision is not mentioned in the show-cause notice, then it cannot be made the basis of order for the reason that assessee would have had no opportunity to meet the point. In the instant case, claiming of depreciation on account of foreign exchange fluctuation was not mentioned as ground of revision in the show-cause notice under section 263(1) and, therefore, assessee could not get opportunity to explain the point recorded at the time of passing final order and, therefore, order of CIT under section 263 qua directing AO to pass a fresh order de novo to claim of depreciation on account of Foreign Exchange fluctuation was bad-in-law.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 37(1)
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