BEST WINNERS INSURANCE SERVICES PRIVATE LIMITED,SALEM vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE1(1), , SALEM

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/Addl/JCIT (A)-1, Vadodara (hereinafter in short ‘the Ld.CIT(A)’), dated 09.01.2025 for the Assessment Year (hereinafter in short ‘AY’) 2011-12.

The registry has noted a delay of 44 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of Managing Director of the assessee. Considering the period of delay, the delay is condoned and we proceed with disposal of the appeal.

It could be seen that the assessment has been framed on best judgment basis. Upon perusal of para-4 of first appellate order, it could be seen that the assessee failed to make any representation therein. Accordingly, the assessment was confirmed against which the assessee is in further appeal before us. The Ld. AR has pleaded for another opportunity of hearing which has been opposed by Ld. Sr. DR.

Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case. The same would come at a cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned AO who shall proceed for de novo assessment after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. AO shall be at liberty to proceed with assessment on merits. 5. The appeal stand allowed for statistical purposes.

We note that the assessment has been passed ex-parte u/s 144 lacking evidence and explanation from the assessee. However, the AO has not given his comments with regard to the Rule 46A and cash book however, he left this to ld.CIT(A) being co-terminus authority. Hence, we are of the considered view that this issue of addition u/s 69A requires relook by the AO. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.AO for de novo adjudication subject to cost of Rs.5000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Ld.AO whose (AY 2011-12) M/s. Best Winners Insurance Services Pvt. Ltd shall proceed for denovo assessment after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.AO shall be at liberty to proceed with the assessment proceedings as per law.

In result, the appeal filed by the assessee stand allowed for statistical purposes.