Jai Maa Bhagwati Fruit & Vegetable Co vs ITO

Sudhanshu Srivastava, J

This appeal has been preferred by the assessee against the order of the ld. CIT(A)-12, New Delhi dated 14.12.2018 and pertains to AY 2015-16.

2.0 At the outset, the ld. AR submitted that the assessee is a partnership firm dealing in fruits and vegetables. It was further submitted that at the time of assessment proceedings, there was a dispute amongst the partners of the firm and, therefore, the relevant documents and details required by the Assessing Officer could not be furnished. He submitted that since details could not be furnished, the Assessing Officer proceeded to form best judgment assessment u/s 144 of the Income Tax Act, 1961 (hereinafter called 'the Act'). It was further submitted that subsequently, the assessee's appeal before the ld. Commissioner of Income Tax(A) was dismissed on the ground that the relevant details could not be furnished due to the dispute between the partners. It was submitted that this fact was duly brought to the notice of the ld. Commissioner of Income Tax(A) and the ld.CIT(A) had also noted the submission of the assessee in this regard in para 6.1 of the impugned order. It was further submitted that however, the ld. Commissioner of Income Tax(A) also dismissed the assessee's appeal because the relevant details could not be filed. The ld. AR prayed that now the dispute has been settled and if given an opportunity, the assessee will produce the required documents and books of accounts before the Assessing Officer. The ld. AR submitted that he undertakes to make due compliance before the lower authorities.

2.1 The ld. Sr. DR had no objection to the matter being restored to the file of the Assessing Officer.

2.2 Having heard both the parties and having perused the material on record, it is our considered opinion that in the interest of substantial justice, the case should be heard de novo by the Assessing Officer. Accordingly, we restore this file to the Assessing Officer with the direction to frame the fresh assessment order in accordance with law after giving due opportunity to the assessee to present its case. We also direct the assessee to present itself with a copy of the order of the Tribunal before the Assessing Officer on or before 31.10.2019 failing which the Assessing Officer shall be at liberty to proceed ex parte qua the assessee in accordance with law.

In the result, the appeal of the assessee stands allowed for statistical purposes.