During the course of revisionary proceedings under section 263, the PCIT observed that during the course of reassessment proceedings, the Assessing Officer has not examined/enquired the details of facts of the case and hence the reassessment order is erroneous so far as prejudicial to the interest of revenue. Show cause notice dated 18.03.2021 under section 263 was issued to the assessee and date of hearing was fixed on 22.03.2021. However, the assessee did not give reply on the aforesaid date of hearing. The revisionary order under section 263 was passed on 23.03.2021 which is within 5 days from the date of issue of show cause notice.

Tribunal observed that proper and effective opportunity of being heard was not provided by Ld. PCIT to the assessee before passing the impugned revisionary order since the said order was passed within five days from the date of issuance of show cause notice. Accordingly, the Tribunal set aside the revisionary order passed by the Ld. PCIT. The matter was restored back to the file of the Ld. PCIT to pass fresh revisionary order after giving proper and adequate opportunity of being heard to the assessee.(AY. 2010-11)