ITAT Hyderabad Recalls Order, Allows Additional Evidence on Commission Disallowance

The Appellate Tribunal, ITAT Hyderabad, recalled its earlier order upon the assessee's request to reconsider the issues of payment of commission and valuation of land. The Tribunal accepted additional evidence submitted by the assessee, including a confirmation letter, and set aside the disallowance of commission. It directed the assessing officer to re-examine the claim and allow a reasonable commission. The Tribunal emphasized the importance of the additional evidence in determining the allowability of the commission. The appeal was partly allowed, and a fresh examination by the assessing officer was ordered.

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Issues involved: Appeal against the order of the Commissioner of Income-tax(Appeals)-III Hyderabad dated 9.6.2008 for the assessment year 2004-05. Recall of order for issues of payment of commission and valuation of land as on 1.4.1981.

The Appellate Tribunal, ITAT Hyderabad, recalled its earlier order dated 18th December, 2009, upon the assessee's request through a Miscellaneous Application, specifically for reconsideration of the issues of payment of commission and valuation of land as on 1.4.1981. The Tribunal agreed to the recall, citing the mistake apparent from the record, and directed a fresh hearing for these two issues in the interest of justice.

Regarding the issue of payment of commission, the assessee submitted additional evidence through a petition under Rule 29 of the Appellate Tribunal Rules, 1962, supported by a sworn affidavit. The evidence included a confirmation letter from the employer of the individual involved, stating the services rendered and payments received. The Tribunal noted the additional evidence and set aside the earlier order of disallowance, directing the assessing officer to re-examine the claim, ascertain the genuineness of services rendered, and allow a reasonable commission proportionate to the services provided.

The Tribunal rejected the grounds of the assessee on the commission payment issue in the initial order, citing the timing of the agreement and lack of specific evidence of services rendered. However, upon considering the additional evidence filed by the assessee, the Tribunal set aside the lower authorities' orders and directed a fresh decision by the assessing officer, emphasizing the importance of the additional evidence in determining the allowability of the commission.

In conclusion, the Tribunal partly allowed the appeal of the assessee, specifically on the issue of payment of commission, directing a fresh examination by the assessing officer based on the additional evidence provided. The order was pronounced in court on 22.11.2011.

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