2016 (1) TMI 1123

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....rder dated 28.12.2011. 2. The only issue in this appeal of revenue is against the order of CIT(A) deleting the disallowance of coordination charges paid to Ganco SS (India) Ltd. (GSSIL) added by AO by admitting fresh evidence in violation of rule 46A of I. T. Rules, 1962( herein after referred as "the rules"). Aggrieved, revenue preferred these following two grounds: "1. That the CIT(A) erred in admitting fresh evidence under Rule 46A overruling objection of the Assessing Officer. 2. That on the facts and circumstances of the case the CIT(A) erred in deleting disallowance of Rs. 1.10 crore made by the AO on account of amount paid to M/s. Ganco SS India Pvt. Ltd." 3. Briefly stated facts are that the assessee is del credre agent ....

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.... "The additional evidence submitted by the appellant are relevant to the issue of disallowance of coordination charges and are admitted since these evidences go to the root of the matter under consideration. Keeping in view above submissions and the counter comments of the appellant the coordination charges of Rs. 1,10,00,000/- was paid by the appellant M/s. Ganco SS Pvt. Ltd. for managing a turnover of 45,833 metric tones of the materials from more than 75 customers by A/c Payee cheque after deduction of TDS. It is pertinent to note that the similar coordination charges payment was accepted by order dated 26.11.2008 u/s. 143(3) for AY 2006-07 by DCIT, circle-2, Kolkata. Therefore keeping in the view the above facts and circumstances th....

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....rted the position in the remand report also. We find that the AO in his remand report neither referred to nor dealt with the evidence produced by assessee before CIT(A), which in turn, were referred to him the facts are emerging from the case records. "i) M/s. Ganco is a del credere agent for the assessee since 1st April, 2005 and the coordination charges to them from year to year has been allowed as deduction in the case of the assessee. The assessment for the Assessment year 2006-07, the first year of assessee's business with M/s. Ganco, was completed u/s. 131 of the Act and after examining the genuineness of the transaction with M/s. Ganco. This fact is verified from the Assessment Order for the Assessment Year 2006-07. ii) A del c....