2018 (5) TMI 1013

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....addition of Rs. 1,32,09,510/- made u/s 68 of I.T. Act, 1961 without giving any cogent reason. (ii) On the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs. 1,11,22,297/- made u/s 37 of I.T. Act, 1961 as the assessee failed to prove the business expediency of this expenditure of payment of commission." 2. The brief facts emanating from the order of the A.O. and the submissions of the assessee is that the assessee had filed the loss return of (-) Rs. 36,714/- and the case was taken up for scrutiny. Shri Tripat Pal Singh and Smt. Harjeet Kaur are the Directors of the Company which started operations/ business from February 2010 (F.Y 2009-10). The assessee is in the business of o....

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....dditions before Ld. CIT(A). The written submissions of the assessee before the Ld. CIT(A) is reproduced as under : "3.3. The assessee is in appeal against the order of the AO and against the addition and the disallowances made by the AO and it is submitted that the assessee is in the online business of supply of grocery through home delivery and the business was started from February 2010 (F.Y 2009-10). It is submitted that the registration fee and the advances from the customers has been received from about 500 customers through mostly online or cheque and the proper identity of each of the customers like name, address, photo ID, mobile number, PAN number etc. has been collected from each of the customers and there is no scope of ....

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....included one-time registration fee of Rs. 10,84,482/- and the balance amount of Rs. 1,32,09,510/- for which proper documentation has been maintained as the business is through online. There is also no proper justification for disallowing the claim of commission payments which has been even otherwise added by the assessee in the computation of income. After considering all the facts and circumstances of the case, I am of the view that there is no proper justification for making the addition in this case vide ground No.2 to 6 and 7 and accordingly the same is deleted." 5. The Ld. D.R. contended that on both the additions A.O. given specific notice to the assessee for explanation and compliance. Further, no compliance have been made and no ....

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....ould, therefore, show that assessee produced the evidence for the first time before Ld. CIT(A) in respect of both the grounds of appeal. However, no opportunity have been given to the A.O. to rebut the evidences produced by assessee at appellate stage and even no remand report have been called for in the matter. It is, therefore, a case of denial of an opportunity to the A.O. at appellate stage, particularly, when no evidence was filed before A.O. at assessment stage. Natural justice requires that before deleting the addition, the Ld. CIT(A) shall have to give an opportunity of being heard to the A.O. or the Ld. CIT(A) should have call for the remand report from the A.O. However, nothing has been done in the matter. Even the assessee has no....