9911796707
TMI Blog2017 (12) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue in dispute is non-reasoned, we feel it appropriate to restore the issue-in-dispute to the file of the learned CIT(A) for passing a speaking and reasoned order after considering the submission of the assessee.Accordingly, the Ground No. 2 of the appeal is allowed for statistical purposes. - ITA No. 128/Del/2015 - - - Dated:- 21-12-2017 - SH. AMIT SHUKLA, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Dr. Rakesh Gupta Sh. Shaantanu Jain, Advocates For The Respondent : Sh. Subhakant Sahu, Sr.DR ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against order dated 05/11/2014 passed by the Ld. Commissioner of Income-tax( Appeals)- XXV, New Delhi[ in short the Ld. CIT-(A)] for assessment year 2010-11 raising following grounds: 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making estimated and ad-hoc disallowance of ₹ 16,09,778/- on account of commission expenses and that too by recording incorrect facts and findings and without giving adequate opportunity of hearing and without bringing any adve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment entered into with them. 4) Correspondence made with such agents. 5) Details regarding basis of commission paid. 6) Whether your agents as referred to above provided similar services to any other party (other than you.) 3.2 The assessee filed copy of the Ledger account of the commission expenses and information related to deduction of tax at source (TDS) on such commission. According to the information, TDS on ₹ 16,54,268/- was deducted as per the rate applicable for commission and TDS on ₹ 5,63,000/- was deducted as per the rate applicable for salary. 3.3 According to the Assessing Officer, the assessee did not furnish reply of the queries related to justification of the commission expenses. He further observed that the assessee even did not produce the vouchers in respect of the commission expenses, however keeping in view the business of the assessee, he did not rule out payment of some commission, and accordingly he allowed commission of ₹ 6,00,000/- is incurred genuinely and disallowed the balance amount of ₹ 16,09,778/- out of the commission expenses and added back to the total income of the assessee. 3.4 Before the Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient relevant details to the AO during the hearing to prove the genuineness of above commission payments. 3.6 Simultaneously, the learned CIT(A) analyzed the information filed by the assessee. The observation of the Ld. CIT(A) are summarized as under: 1. The return of income filed by the commission agents did not indicate the nature of income. 2. The profit and loss account and bank statement of all such agents were missing. 3. Confirmations of the commission agent were missing 4. On the vouchers or the purchase orders issued by the buyers of electrical goods, name of the commission agent was not specified. 5. The buyers like BHEL, HINDALCO, etc purchased goods to tender and involvement of commission agent is ruled out in case of such buyers. 3.7 In view of the above observation, the Ld. CIT(A) held that the claim of commission expenses of ₹ 22,09,778/- was not entirely genuine and accordingly, he upheld the disallowance of ₹ 16,09,778/- made by the Assessing Officer. 3.8 Before us, the Ld. counsel of the assessee referring to the ground submitted that addition has been sustained by the Ld. CIT(A) without providing adequate opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mination/cross-examination of those commission agent in the light of the evidences filed by the assessee. 3.11 In view of above facts and circumstances, we find that addition has been sustained without providing sufficient opportunity to the assessee and without considering submission of the assessee as well as without following the procedure under Rule 46A of Income-tax Rules, hence we feel it appropriate to restore the issue to the file of the learned CIT(A) for deciding afresh after considering the evidences filed by the assessee and after carrying out necessary enquiries required in the matter. Both the parties shall be afforded adequate opportunity of being heard. Accordingly, the ground of the appeal is allowed for statistical purposes. 4. The ground No. 2 relates to disallowance of ₹ 38,000/- on account of Diwali expenses. 4.1 The Assessing Officer observed expenses of ₹ 1,73,779/- on account of Diwali expenses debited to profit and loss account. The Assessing Officer observed that though the assessee had furnished copy of the Ledger account of the above expenditure but the assessee has not produced vouchers in this regard. He further noticed that expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... designation and bonus amount paid on the Diwali. He submitted that all those documents were also provided to the Ld. CIT(A), but he did not consider the same. According to the Ld. counsel the bonus payment was made to the employees of the assessee as reflected from the copies of vouchers available on page 159 to 171, and thus the addition should be deleted. 4.4 Learner Sr. DR, on the other hand, relied on the order of the lower authorities. 4.5 We have considered the rival submission and perused the relevant material on record. In our opinion, the learned CIT(A) has not given any reasons for upholding the finding of the Assessing Officer and not considered the submission of the assessee. As the order of the learned CIT(A) on the issue in dispute is non-reasoned, we feel it appropriate to restore the issue-in-dispute to the file of the learned CIT(A) for passing a speaking and reasoned order after considering the submission of the assessee. Both the parties shall be afforded adequate opportunity of being heard. Accordingly, the Ground No. 2 of the appeal is allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
