TaxTMI 
TaxTMI 
2026 (1) TMI 1106
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....outlet as Authorised Dealer for sale of sim cards, recharge coupons etc., on commission basis. The assessee receives only 1% commission from these sales and recharge. The assessee was totally dependent upon his Chartered Accountant who was dealing with the tax matters. However, after the Covid-2019 pandemic, there was a communication gap and assessee did not receive any update from the Chartered Accountant for a long time after filing the appeal before the learned CIT(A) in February, 2020. Thereafter, the assessee changed his Tax Consultant who has verified from the Income Tax Portal that the learned CIT(A) has already passed the impugned order on 09.03.2023. Therefore, there is a delay of 674 days in filing the present appeal before the Tribunal. The learned Authorised Representative of the Assessee has submitted that the Assessing Officer has made an unjustified addition on the income of the assessee by applying the commission @ 3% instead of 1% received by the assessee as per the agreement between the parties. Further, he has submitted that the Assessing Officer has taken the turnover as the entire credit in the bank account instead of the actual turnover already declared by the....
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....mber is 9502470404 and address is as follows: No. 111-145-a8-9, 2nd Main, Prashanth nagar, Madanapalle, Andra Pradesh - 517325. 5. That, for the Assessment Year 2017-18, My case was selected for regular scrutiny under CASS and to represent on my behalf, I entrusted the matter to the above name CA and I was under the bonafide belief that he would take care of the same. 6. However, during the scrutiny proceedings my CA (V K Reddy) filed the reply to the notices issued during Assessment. It was submitted before the Assessing Officer that he received only 1% commission from sale of SIM Cards and TDS was made. But the Assessing Officer without acknowledging the same, the Assessing Officer concluded the Assessment Ex-Parte under section 144 of the Act by estimating at 3% of commission received. 7. Aggrieved by the same, I entrusted to the above name CA to file appeal before the CIT (A), Tirupati. As it was during the pre-faceless Appeal scheme period and the appeal was filed Electronically on 13.02.2020. 8. That, immediately in the month of March 2020, the whole country was struck by COVID 19 pandemic and I could not move to my native due to travelling....
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....to represent the matter before the Hon'ble ITAT. 20. The Appellant-Assessee did not have any intention of delaying in filing of an Appeal and the Appellant prays to condone the delay of 700 days and admit the appeal and post the same for hearing at an early date, in the interest of principles of natural justice and equity." 5. Considering the peculiar facts of the case of the assessee that assessee is an individual and a retired CRPF personnel as well as the additions made by the Assessing Officer by taking an arbitrary rate of commission instead of giving any basis either the agreement between the parties or otherwise prevailing rate of commission in this line of business/trade. The assessee in the return of income has declared the income from the business by applying 1% commission on the turnover. However, the Assessing Officer has assessed the income by taking the entire credit in the bank account as turnover of the assessee and further adopted the commission @ 3% instead of 1% claimed by the assessee. Therefore, in the facts and circumstances of the case and in the interest of justice, we are taking a lenient view to construe the sufficient cause as explained by....
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....r without conducting any enquiry, has taken total deposit in the bank account as well as turnover of the assessee and then, applied the profit @ 3%. It is pertinent to note that the assessee in this line of business is getting only the commission as agreed between the parties as per the agreement. Further, against the commission income, the assessee is also incurring the expenditure, which is allowable and, therefore, even the entire commission cannot be assessed as income of the assessee without allowing the permissible and allowable claims of deduction. Thus, it is apparent from the assessment order that the Assessing Officer has made the addition arbitrarily without giving any basis and particularly on the commission by adopting commission @ 3%. The relevant part of the assessment order is as under : "When called for the details and sources for cash deposits made during the FY A 2016-17, the assessee failed to furnish any information. It is noticed from the bank statement and return of income filed for the AY 2017-18 that the assessee was agent for Airtel online payment bank, Gold Crest Services Pvt. Ltd., Idea Mobile Commerce Services Lt. Oxigen Services India Pvt. Ltd....