9911796707
TMI Blog2021 (2) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... brief facts of the case are as follow: The assessee is an individual. He is engaged in the business of a direct selling agent (DSA) for various Financial Institutions / Banks in the name and style of SSBS Financial Corp. The assessee gets various loans processed for his customers and earns commission from concerned financial institutions / banks. It is stated that the financial institutions / banks give commission based on slab system (higher number of loans higher the commission). Therefore, the assessee started pooling of cases with other DSAs to enter into higher slab and get better commission payout. In these processes, the assessee had to pay commission to other DSAs for cases being referred by them, from the total commission earned b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reason why the same could not be produced in proceedings before the A.O. Consequently, the disallowance of commission paid to other referral DSAs was confirmed by the CIT(A). 7. Aggrieved by the order of the CIT(A), the assessee has filed this appeal before the Tribunal. The assessee has filed a petition under Rule 29 of the ITAT Rules for admission of additional evidence. It was stated by the learned AR that in proceedings before the Assessing Officer a very short time was given to file the relevant details. It was stated that the details with regard to the commission payment was sought by the A.O. only on 10.12.2018, i.e. at the fag end of the limitation period and the assessment order was completed on 26.12.2018. It was submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oper adjudication of the case. In this context, the learned AR relied on the CBDT Circular No.14 of 1955 dated 11.04.1955 and other judicial pronouncements for the proposition that the additional documents which goes to the root of the issue and for advancement of substantial cause, ought to be admitted and taken on record for a proper adjudication of the case. 8. The learned Standing Counsel supported the orders passed by the Income Tax Authorities. 9. I have heard rival submissions and perused the material on record. Before the Assessing Officer the details with regard to the referral commission were called for, for the first time only on 10.12.2018. Since the details called for were not in the control of the assessee, the assessee coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mi (Prop : ACTIF Solutions) and Bank statement of DSA, Mr.Manohar B. 9.1 The CBDT in its Circular No.14 of 1955 dated 11.04.1955, has stated the officers of the department must not take advantage of ignorance of the assessee about his rights and it is their duty to assist the tax payer in every reasonable way particularly in the matter of claiming and securing reliefs. In the instant case, the CIT(A) has rejected the additional documents filed by the assessee on the ground that a formal petition was not filed. Following the Board Circular, the CIT(A) should have given an opportunity to the assessee to file the formal petition. The Hon'ble Supreme court in the case of Sambhaji and Others v. Gangabai and Others, reported in (2008) 17 SCC 117 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the party intending to lead evidence before the Tribunal for the first time was prevented by sufficient cause to lead such an evidence and that said evidence would have material bearing on the issue which needed to be decided by the Tribunal and ends of justice demand admission of such an evidence, the Tribunal can pass an order to that effect. 9.3 The Hon'ble High Court of Punjab and Haryana in the case of Principal CIT v. Daljit Singh Sra [2017] 80 taxmann.com 271 (Punjab & Haryana) has held that although the assessee did not co-operate with the Assessing Officer in completion of assessment proceedings but for delivery of justice, the real income of assessee has to be assessed and that too after hearing the assessee. The Court u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
