S. 263 Order passed by PCIT by Violating Principles of Natural Justice: ITAT quashes Disallowance of Interest on Grant of Rs. 4.18 crore

The ITAT has quashed the disallowance of interest on a Rs 4.18 crore grant, ruling that the order passed by the Principal Commissioner of Income Tax (PCIT) violated the principles of natural justice. The ITAT found that the PCIT had not provided adequate opportunities for the assessee to present its case before making the disallowance. The ruling highlights the importance of following natural justice principles in tax proceedings and ensures that taxpayers are given a fair chance to present their arguments. The case underscores the need for transparency and fairness in the disallowance of claims and the issuance of tax orders.