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Facts
The assessee, a partnership firm engaged in authorized sales services for Hero Motorcorp, failed to appear before the Assessing Officer and CIT(A)/NFAC for Assessment Year 2018-19. This led to a best judgement assessment under Section 147 r.w.s. 144 of the Act, with significant additions made.
Held
The Tribunal observed that the assessee was entitled only to commission income and had not filed a return of income for the year. Due to the assessee's failure to appear, the Tribunal deemed it appropriate to remit the issues back to the Assessing Officer for de novo adjudication, ensuring a fair opportunity.
Key Issues
Whether the assessee's failure to appear before the tax authorities warrants a de novo adjudication by the Assessing Officer to ensure a fair opportunity.
Sections Cited
250, 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER MANISH BORAD, AM:
This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC u/s 250 of the Act dated 03.12.2024 which is arising out of the assessment order u/s 147 r.w.s. 144 of the Act for Assessment Year 2018-19 framed on 11.03.2024 by the ITO, NFAC, Delhi.
At the outset, Ld. Counsel for the assessee submitted that due to unavoidable circumstances the assessee could neither appear before the Assessing Officer nor before Ld. CIT(A)/NFAC and, therefore, seek opportunity to restore the issue raised in the grounds of appeal to Learned Jurisdictional Assessing Officer (in short Ld. JAO) for de novo adjudication.
3. Ld. DR did not object the prayer of the assessee.
We have heard rival contentions and perused the records placed before us. We observe that the assessee is a partnership firm engaged in trading activities and also runs authorized sales services for M/s. Hero Motorcorp Limited. The assessee carries on the business of two-wheeler vehicles for past many years and the sale consideration received from the customers through check/cash are deposited in the bank account and then amount is transferred to M/s.
Hero Motorcorp Limited. The assessee is only entitled to commission income. For assessment year 2018-19, the assessee did not file the return of income but based on the information about the cash deposit in the bank account maintained with Axis Bank, case of the assessee for A.Y. 2018-19 selected for scrutiny but assessee failed to appear on the dates of hearing resulting in framing of best judgement assessment u/s 147 r.w.s. 144 of the Act and various additions made totalling to Rs.1,73,04,496/-.
The assessee though filed an appeal before Ld. CIT(A)/NFAC but could not pursue it and failed to appear on the given dates of hearing resulting into the impugned ex-parte order.
Before us, the assessee has filed the copies of profit & loss account, balance sheet and also copy of Form 26AS indicating the tax deducted at source by M/s. Hero Motorcorp Limited on the commission paid to the assessee for sale of two-wheelers vehicles and is duly supported with letter issued by Here Honda Motors Limited awarding the Hero Honda Service Centre to the assessee at Dapodi. The documents filed before us indicate that the assessee is engaged in the business of selling two-wheelers vehicles for M/s.
Hero Motorcorp Limited, books of account are regularly maintained and alleged cash deposit is claimed to be the sale consideration received from the customers.
Under these given facts and circumstances, we deem it appropriate to remit back all the issues raised on merits to the file of Ld. JAO for de novo adjudication and then decide in accordance with law. Needless to mention here that fair and proper opportunity shall be granted to the assessee. All the grounds of appeal raised by the assessee in the instant appeal are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 14th day of July, 2025.