C.P. Sharma,, Gurgaon vs Assessee

This is an appeal filed by assessee against the order of Ld. CIT(A) dated 21.07.2009. The appeal was earlier heard on 12.10.2010 ex-parte qua assessee and was dismissed in limine vide Tribunal order dated 12.10.2010. However, the same was recalled vide Tribunal order dated 18.03.2011 and the matter was heard on merits on 30.04.2014 but the order could not be passed as the Hon'ble Judicial Member was transferred and the case was released for fresh hearing which has been head today on 17.02.2015.

2. At the outset, Ld. A.R. invited our attention to application for taking on record the additional documents and also to the fact that assessee had filed additional grounds of appeal and it was prayed that the additional evidences and additional grounds be admitted as these go to the root of the matter.

2 ITA No.3825/Del/2009 3. Ld. D.R. on the other hand objected to the filing of additional evidence as she argued that the additional documents pertain to the factual matrix and it was not taken before the authorities below and, therefore, it should not be taken on record. Ld. D.R. submitted that in one of the documents Ld. A.R. has claimed that the property on which A.O. had estimated rental income belonged to his wife whereas nowhere before Ld. CIT(A) or A.O., the assessee had claimed the same.

4. Ld. A.R. on the other hand submitted that sale deed of the said property was filed with the A.O. and in this respect; he invited our attention to the application for additional documents wherein Ld. A.R. has certified that the sale deed mentioned at Sl. No15 was filed before A.O. Ld. A.R. further submitted that the documents in respect of foreign travel and in respect of ownership of property were filed in compliance with direction of the Tribunal on dated 24.05.2012. Therefore, it was submitted that the documents go to the root of the matter therefore, in the interest of justice, the same may be admitted. Ld. A.R. further submitted that copies of income that returns of income of his wife and son are a matter of record which has been filed to demonstrate that addition on account of house hold drawings was not warranted. Regarding commission income, the Ld. A.R. submitted that copies of agreements with builders from whom commission was received was received after completion of proceedings therefore, could not be filed buts since these are crucial documents and go to the root of mater, therefore, these should be admitted.

5. We have heard rival parties and have gone through the material placed on record. We find that Ld. CIT(A) has confirmed three additions one of which relates to foreign travel expenditure of Rs.4,06,894/-. Ld. A.R. had filed certain additional documents representing details of travel record on 3 ITA No.3825/Del/2009

31.03.2014 and further on 28.04.2014. Though the order sheet dated 31.03.2014 and afterwards does not mention about these additional documents but these documents along with application of assessee are on record and the matter was originally head on merits on 30.04.2014, therefore, it is presumed that these documents were taken note of by the Bench. The second addition confirmed by Ld. CIT(A) is with respect to income of assessee from commission as brokers of real estate, Ld. A.R. in the application has submitted that the settlement agreement with the builders from whom commission was received, was obtained after the assessment was completed but since these were necessary and important documents which go to the root of mater, therefore, it should be accepted. With regard to the addition on account of house hold withdrawals, the Ld. A.R. submitted that his wife and son were also earning incomes and copy of their returns of income along with bank statements prove that son and wife also contributed towards house hold expenses. In view of the above facts and circumstances, we are of the view that the matter needs readjudication by A.O. in view of fresh documents. Therefore, the case is remitted back to the A.O. for readjudication. Needless to say that assessee will be provided sufficient opportunity of being heard.

6. In view of the above, the appeal filed by assessee is allowed for statistical purposes.

7. Order pronounced in the open court on 20th Feb., 2015.

Sd./- Sd./- (G. C. GUPTA) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER Date: 20th Feb., 2015 Sp 4 ITA No.3825/Del/2009

Copy forwarded to:- 1. The appellant 2. The respondent 3. The CIT 4. The CIT (A)-, New Delhi.

5. The DR, ITAT, Loknayak Bhawan, Khan Market, New Delhi. True copy.

By Order

(ITAT, New Delhi).

S.No. Details Date Initials Designation 1 Draft dictated on 17/2 Sr. PS/PS 2 Draft placed before author 17,18,19 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS 20/2 Sr. PS/PS 6 Kept for pronouncement 20/2 Sr. PS/PS 7 File sent to Bench Clerk 20/2 Sr. PS/PS Date on which the file goes to Head 8 Clerk 9 Date on which file goes to A.R. 10 Date of Dispatch of order