SRI MOTORS,CHENNAI vs. ITO, NCW-8(4), CHENNAI

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short "the Ld.CIT(A)”), Delhi, dated 27.03.24 for the Assessment Year (hereinafter in short "AY”) 2017-18.

At the outset, the Ld.AR of the assessee pointed out that the Ld.CIT(A) has passed an ex parte order without going into the merits of the grounds of appeal raised by the assessee. According to the Ld.AR, even the AO has passed order u/s.144 of Income Tax Act, 1961 (hereinafter in short "the Act") (best judgment assessment) without hearing the assessee. According to the Ld.AR of the assessee, the Authorized Representative who was entrusted with the case of the assessee to represent before the AO, had lost his sight while assessment proceedings were going on and therefore, couldn’t properly represent before the AO, which led the AO to pass best judgment assessment without properly hearing the assessee. 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), the Ld.AR pleaded one more opportunity be granted to the assessee before the AO.

Per contra, the Ld.DR doesn’t want us to give one more innings to the assessee.

Having heard both the sides and perused the records, we note that the Ld.CIT(A) has passed ex parte order without going into the grounds of appeal raised by the assessee. Similarly, the AO has passed an ex parte order without properly hearing the assessee. For the ends of justice and fair play, since assessee didn’t get proper opportunity before the AO as held by the Hon’ble Supreme Court in the case of TIN Box Co. (supra), we set aside the impugned order of the Ld.CIT(A) and restore the (AY 2017-18) M/s. Sri Motors assessment back to the file of the AO for de novo assessment and the assessee is directed to file relevant documents/written submissions before the AO and the AO to frame assessment de novo after hearing the assessee.

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