REVISION U/S 263 BEFORE EXPIRY OF NOTICE TIME

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10 April 2022 A notice u/s 263 of Income Tax Act, 1961 was issued on 25.07.2021 against which the assessee sought adjournment. Later upon change in incumbency a fresh notice was issued on 24.11.2021 to which the assessee responded on 15.12.2021. Then once again a notice was issued on 04.03.2022 was issued setting the response date as 08.03.2022 and on 08.03.2022 the order u/s 263 was passed without waiting for the final response if any as was called till 08.03.2022. Later on 20.03.2022 another notice dated 04.03.2022 was emailed setting the date of hearing as 21.03.2022 and in the same notice another date of hearing was mentioned as 08.03.2022.

Please advise about legality of the revisionary order passed u/s 263 on 08.03.2022.

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)
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26 July 2022 I found it difficult to fathom the last part of the question where it is stated that after passing of an order on 08.03.2022, on 20.03.2022 another notice dated 04.03.2022 was emailed setting the date of hearing as 21.03.2022 and in the same notice another date of hearing was mentioned as 08.03.2022.

If I respond to the query until when you say that date for response was 08.03.2022 and without waiting for final response, an order u/s.263 was passed, things are much simpler. It then does not remain a problem pertaining to s.263 of Income Tax Act only. Such an order violates basic principle of audi alteram partem and is in violation of both- the statutory provisions and principles of natural justice. It is liable to be quashed on limited ground of having been passed without affording an opportunity of hearing. You will find many judgments on above line, though they may not be directly on s.263.

Author: Advocate Ravish Bhatt
Gmail: ravishdbhatt@gmail.com
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