S-237, LAKSHMAYUR PRIMARY AGRICULTURAL CO-OP. CREDIT SOCIETY,SALEM vs. ITO, WARD-1(6),, SALEM

1. This is an appeal preferred by the assessee Primary Agricultural Cooperative Credit Society against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short "the Ld.CIT(A)”), Delhi, dated 24.05.2024.

At the outset, the Ld.AR of the assessee pointed out that the Ld.CIT(A) has passed an ex parte order qua assessee. According to the assessee, it didn’t receive any notices of hearing due to glitches in the network/computer. Be that as it may, we note that the Ld.CIT(A) has not decided the grounds of appeal as stipulated under sub-section (6) of section 250 of the Income Tax Act, 1961 (hereinafter in short "the Act").

In addition to the above infirmity of the impugned order, it was also brought to our notice by the Ld.AR that the Assessment Order has been framed by the AO u/s.144 of the Act (best judgment assessment).

According to the Ld.AR, omission to appear/respond during the course of assessment proceedings was not deliberate, since the official who handled the tax matters was not aware of the proceedings and therefore, the assessee was in the dark about the ongoing assessment proceedings. Be that as it may, it is noted that the assessee didn’t get proper opportunity before the AO. Therefore, relying on the decision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC), we restore the assessment back to the file of the AO for de novo assessment and the assessee is directed to file written submissions/relevant documents as called for by the AO in the first round itself. Since there is negligence on the part of the assessee, cost of Rs.5,000/- is imposed which the assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of (AY 2017-18) S-237, Lakshmayur Primary Agricultural- Co-op. Credit Society depositing of the same before the AO and thereafter, the AO to frame the de novo assessment after hearing the assessee in accordance to law.