2022 (8) TMI 1535 - AT - Income Tax

Undisclosed commission income - agreement for sale of land entered by the assessee with the purchaser and as agreement has been cancelled, the amount has been returned to the said parties by the assessee - receipt and/or acknowledgement issued by the said purchaser has been filed before us by way of an application for additional evidencing - HELD THAT - Having regard to the facts and circumstances of the case and being satisfied with the fact narrated by the assessee in the application under Rule 29 of the Income Tax Rules, 1963 we admit the said additional evidence. However, since the issue remained undecided on merit we are disposing of the appeal be remitting the issue to the file of the Ld. AO to decide the same afresh and to pass a reasoned order . Addition u/s 68 deleted by CIT - CIT(A) speaks of quashing of the assessment order for A.Y. 2011-12 holding the same unsustainable in law - HELD THAT - The right course of action on behalf of the Revenue would have been to challenge the said order of quashing of the assessment order on maintainability ground instead of deletion of addition made by the CIT(A) which is wholly academic. Hence, we do not find any merit in the appeal preferred by the Revenue. Thus, the same is dismissed.

Summary

Issues:
Cross appeals against order dated 11.06.2020 passed by Ld. CIT(A)-3, Bhopal under Section 153C r.w.s 143(3) for A.Y. 2012-13 & 2011-12.

Analysis:
1. The ITAT Indore heard the cross appeals by the assessee and Revenue against the Ld. CIT(A)-3, Bhopal's order for A.Y. 2012-13 & 2011-12. The appeal for A.Y. 2012-13 involved challenges against additions for undisclosed investments and commission income. The undisclosed commission income of Rs. 21,00,000 arising from a land sale agreement was returned to the parties by the assessee, supported by a receipt from the purchaser. The ITAT admitted additional evidence and remitted the issue to the AO for fresh consideration, allowing the appeal for statistical purposes.

2. For A.Y. 2011-12, the Revenue challenged various additions made by the AO, which were deleted by the Ld. CIT(A). The ITAT noted that the Ld. CIT(A) also quashed the assessment order for A.Y. 2011-12 as unsustainable in law. The ITAT found the Revenue's appeal lacking merit as challenging the quashing of the assessment order would have been appropriate instead of contesting the deletion of additions. Consequently, the ITAT dismissed the Revenue's appeal and allowed the assessee's appeal for statistical purposes.

3. The ITAT's order was pronounced in Open Court on 10/08/2022, emphasizing the decisions made regarding the appeals for both A.Y. 2012-13 and 2011-12. The judgment provided a detailed analysis of the issues raised in the cross appeals, highlighting the considerations of undisclosed investments, commission income, and various additions challenged by the Revenue for A.Y. 2011-12. The ITAT's decision to remit the issue to the AO for fresh consideration and the dismissal of the Revenue's appeal based on procedural grounds were key aspects of the judgment.