9911796707
TMI Blog2012 (11) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted any request for adjournment. Considering the nature of issue and the findings of ld. CIT(A), the Bench proceeded to dispose of the appeal after hearing the ld. DR. 3. Facts, in brief, as per relevant orders are that return declaring income of Rs.8,34,136/- filed on 31.10.2007 by the assessee, was selected for scrutiny with the service of a notice u/s 143(2) of the Income-tax Act, 1961 (hereinafter referred to as the Act), issued on 17.03.2008. None seems to have responded to this notice nor to subsequent notices dated 25th August, 2009 & 14th September, 2009 issued u/s 143(2) of the Act. Even the notice issued on 5th November, 2009 u/s 143(2) of the Act also went on responded. In these circumstances, the Assessing Officer[AO in short] issued a show cause notice, asking the assessee as to why assessment be not completed u/s 144 of the Act with the disallowance of 25% of expenses claimed. This notice was also not replied to. Accordingly, the AO completed the assessment u/s 144 of the Act with the disallowance of 25% of the expenses, resulting in disallowance of Rs.10,58,278/-. 4. On appeal, the ld. CIT(A) reduced the disallowance to Rs.1,12,627/-, without allowing any op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, audit fee etc. Therefore, during the appellate proceedings, the appellant's AR was asked to submit the necessary documents to substantiate commission charges, audit fee etc. Therefore, during the appellate proceedings, the appellant's AR was asked to submit the necessary documents to substantiate the expenses debited in the P&L account. Accordingly, on 29.2.2012 the appellant's AR appeared with necessary particulars and a covering letter dated 28.2.2012 which is as follows: "Please find the documents as required by your goodself towards the finalization of appeal of Mr. Harjeet Singh )Prop. Satguru Trailer Transport) PAN ACRPS 8274M, as mentioned below: 1. Postate & courier exps. Annexure-1 2. Printing & stationery Annexure-2 3. Repairing & Maintenance Annexure-3 4. Salary & wages Annexure-4 5. Staff welfare Annexure-5 6. Travelling & conveyance Annexure-6 7. Vehicle running & maintenance Annex.7 8. Depreciation Annexure-8 9. Intt. On loan Annexure-9 10. Trailer staff salary Annexure-10 11. Bank charges Annexure-11 12. Trailer running & Maintenance Annex.12 13. Communication exp. Annexure-13 14. General exp. Annexure-14 15. Office exp. Annexure-15 Kindly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details. The ld. CIT(A) further found that show cause notice dated 15th December, 2009 was not served upon the assessee. However, we find that impugned order is silent as to whether the assessee produced the relevant books of account or bills and vouchers before the ld. CIT(A) nor seems to have allowed any opportunity to the AO to examine the details and documents filed by the assessee before him. Despite being fully aware that assessment was completed in this case u/s 144 of the Act, the ld CIT(A) did not allow any opportunity to the AO before reducing the disallowance nor appears to have examined the relevant books of accounts and bills/vouchers while holding that completion of assessment u/s 144 of the Act was not proper. As contended by the ld. DR, the ld. CIT(A) did not follow the procedure laid down under Rule 46A of the IT Rules,1962 nor allowed any opportunity to the AO. The powers of the CIT(A) to admit additional evidence are not only in situations where the evidence could not be produced before lower authorities owing to lack of adequate opportunity but also in situations where the fresh evidence would enable the CIT(A) to dispose of the appeal or for any other substant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) to have done would have been to examine the relevant books and bills/vouchers and ascertain the relevancy and validity of the materials on the basis of which the AO added the amounts instead of deleting/reducing the additions . If the ld. CIT(A) found that any of those so-called materials in the assessment order were not in fact supported by any evidence, it would be his duty to find out to what extent the estimate already made by the AO would be affected thereby. Even otherwise, the ld. CIT(A) did not allow any opportunity to the AO before reducing the disallowances and concluding that completion of assessment u/s 144 of the Act was not proper. There is nothing to suggest that the ld. CIT(A) undertook any independent enquiries or even cal led for any report f rom the AO in the light of his findings in the assessment order, even whi le being fully aware that assessment had been completed u/s 144 of the Act . In these circumstances, especially when the ld. CIT(A) have not ascertained the complete facts nor recorded his specific findings on the relevancy of material gathered by the AO while there appears to be no cogent basis for reducing the addition, without giving any o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
