TaxTMI 
TaxTMI 
2015 (6) TMI 478
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....ssailed on the following grounds:- "On the facts and circumstances of the case, whether the Commissioner of Income Tax(Appeals) was right in law:- 1. In deleting the addition of Rs. 19,24,207/- on account of unexplained low gross profit rate. That the appellant craves for the permission to add, delete or amend the grounds of appeal before or at the time of hearing of appeal." 3. The Co-ordinate Bench as observed vide its order dated 06.09.2007 had dismissed the appeal of the Revenue against the said order. The department thereafter had filed an MA No.-580/Del/2009 on the following grounds before the Co-ordinate Bench on 09.01.2009:- "That there is prima facie mistake in the order of ITAT as the assessi....
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....e date of hearing, no one was present on behalf of the assessee. On a perusal of the order passed by the Co-ordinate Bench in the Miscellaneous Application and the order passed by the ITAT in the first round, the assessee was represented by Sh. R.A. Gupta, FCA. Thus the recall of the order is known to the assessee as the same counsel represented in the M.A. also. However, in the present proceedings pursuant to the order in MA, the assessee remained unrepresented. The record shows that notice for the specific date of hearing has been issued to the assessee on 03.03.2015 for both the assessees appeal as well as the CO filed by the assessee. Despite this, no one was present of behalf of the assessee. The record further shows that even on earli....
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....profession for which payment has been or is to be made in the tax payers relative or associate concern is required to be disallowed in computing its profit of the business or profession to the extent the expenditure is considered to be excessive or unreasonable. The reasonableness of any expenditure is to be judged having regard to the fair market value of the goods, services or facilities for which the payment is made or the legitimate needs of the business or profession or the benefit derived by, or according to the tax payers from the expenditure. Such portion of the expenditure which is excessive or unreasonable according to these criterias is to be disallowed in computing the profit of the business or profession. Reliance is placed on ....
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.... the AO before deciding the issue. 6. We have heard the submissions and perused the material available on record. Taking into consideration the order of the Co-ordinate Bench passed while deciding the appeal and thereafter the MA of the Revenue on a consideration thereof we find that the findings arrived at by the CIT(A) in para 3.3 of the impugned order suffers from the defect that it does not make reference to the findings in the assessment order, the issue has not been addressed. For ready-reference we reproduce the finding under challenge:- 3.3. "The issue has been examined and the addition made by the AO is deleted in as much as the same has been made without any material or evidence on record. The appellant has with the aid of f....