9911796707
TMI Blog2020 (6) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... Honourable CIT (Appeals) are bad in law and against the facts. 2. The first addition confirmed by The Honorable CIT (A) was the addition of disallowance of cash received by the assessee from two of his customers, who could not be produced before the A. O. for recording of their statement due to practical hardship of being their out of station for a long time. All other customers of the assessee except these two persons were produced before the A. O. for recording of their statement. Addition of cash receipts of the assessee from his such customers, statements of whom were recorded by the Assessing Officer, have been deleted by The Hon'ble CIT (A). The said additions were confirmed in appeal not due to detection of any type of concealment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion income earned by the assessee left to be included by him in his income tax return due to oversight. Penalty levied upon this addition is improper and beyond the law & justice for the following two reasons:- a) Income tax at source (TDS) was already deducted by the Life Insurance Co. from whole of the gross commission of Rs. 8907/-, while only two-third part of the gross commission is taxable, as an ad hoc deduction of one-third of gross commission is allowable as expense in case of gross commission being up to Rs. 60000/-. As TDS already deducted on the said commission income exceeds the tax payable on it, therefore no tax evasion was there. Hence, penalty is not leviable. b) The said addition of commission income has been confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The first addition confirmed by The Hon'ble CIT (A) was the addition of disallowance of cash received by the assessee from two of his customers, who could not be produced before the A. O. for recording of their statement due to practical hardship of being their out of station for a long time/ illness. All other customers of the assessee except these two persons were produced before the A. O. for recording of their statement. Addition of cash receipts of the assessee from his such customers, statements of whom were recorded by the Assessing Officer, have been deleted by The Hon'ble CIT (A). The said additions were confirmed in appeal not due to detection of any type of concealment of income like failure of assessee to prove the genuinene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included by him in his income tax return due to oversight. Penalty levied upon this addition is improper and beyond the law & justice for the following two reasons:- a) Income tax at source (TDS) was already deducted by the Life Insurance Co. from whole of the gross commission of Rs. 5232/-, while only two-third part of the gross commission is taxable, as an ad hoc deduction of one-third of gross commission is allowable as expense in case of gross commission being up to Rs. 60000/-. As TDS already deducted on the said commission income exceeds the tax payable on it, therefore no tax evasion was there. Hence, penalty is not leviable. b) The said addition of commission income has been confirmed by The Hon'ble CIT (A) on estimation basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Balance Assessed Income Rs. 625086/- In the meanwhile the penalty under Section 271(1)(c) of the Income Tax Act, 1961 was also imposed on the ground that the assessee is in default for concealing the particulars of his income to the extent of Rs. 4,71,506/- (income after relief by the CIT(A) minus returned income i.e. Rs. 6,25,086/- minus Rs. 1,53,580/-). Thus, the minimum penalty @ 100% of the taxed evaded was levied at Rs. 94,272/-. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. AR submitted that in the instant case, addition to total income of assessee were not made/confirmation by the Assessing Officer /CIT(A) for deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the ambit of concealment is not sufficient. The CIT(A) also not considered the submissions of the Assessee during the appellate proceedings. Therefore, it will be appropriate to remand back this issue of unsecured loan, receipt of cash and insurance commission to the file of the CIT(A) for deciding it with the reasoned order. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. The appeal of the assessee is partly allowed for statistical purpose. 8. As regards to ITA No. 157/Del/2017 for A.Y. 2011-12, the same is identical and here also the CIT(A) has not given any detail finding and also not considered the submissions of the assessee. Therefore, it will be appropriate to remand back ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
