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Income Tax Appellate Tribunal, “ D ” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI WASEEM AHMED
PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Commissioner of Income Tax (Appeals)–2, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)-2/539/DC. Cir.2(1)(2) 2014-15 dated 16.10.2015 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961(here-in-after referred to as "the Act") dated 16.02.2015 relevant to Assessment Year (AY) 2012-13.
ITA No.3584/Ahd/2015 M/s.Jagson Colorchem Ltd. vs. DCIT Asst.Year - 2012-13 - 2 - 2. The solitary issue raised in all the grounds of appeal is that the Ld. CIT(A) erred in confirming the addition of Rs.1,64,70,079/- on account of commission expenses.
At the outset, the Ld.counsel for the assessee drew our attention on the additional evidences filed along with the admission of these evidences under the Rule 29 of I.T.A.T. Rules, 1963 and accordingly submitted that these additional documents are crucial for deciding the issue on hand.
The Ld.AR further submitted that the commission expenses was disallowed by the Assessing Officer which was subsequently confirmed by the Ld. CIT(A) because the assessee failed to file the supporting evidence for its claim of the commission expenses. The assessee failed to file these additional evidence due to some administrative problem in the Accounts Department.
4.1 The Ld.AR further claimed that the commission expenses were also incurred in the earlier years by making payment to the same parties. The Ld.AR in support of his claim filed a chart demonstrating the payment of commission to different parties over a period of four years which is placed on record.
In view of the above, the Ld.counsel for the assessee prayed to us to admit the additional evidences and direct the Assessing Officer to
ITA No.3584/Ahd/2015 M/s.Jagson Colorchem Ltd. vs. DCIT Asst.Year - 2012-13 - 3 - adjudicate the issue afresh as per the provisions of the law and after considering these additional evidences.
On the other hand, the Ld. DR opposed for the admission of these additional evidences on the ground that the lower authorities afforded the assessee sufficient opportunities during the proceedings.
We have heard the Ld. Representatives appearing for the respective parties. We have perused the relevant material available on record. From the preceding discussion, we note that the disallowance of commission expenses was made by the Assessing Officer amounting to Rs.1,64,70,079/- which is a quite substantial amount. Thus, in case, we reject the application for the admission of additional evidences, there will be a huge loss to the assessee which will certainly be disproportionate to the mistake committed by the assessee. Therefore, we are of the view that substantial justice should be preferred over the technical hitches.
7.1. We also find that the reference to these additional documents is essential to resolve the controversy in the instant case. Therefore, we are inclined to admit the additional evidences filed by the assessee as per the provisions of Rule 29 of ITAT Rules, 1963.
7.2. However, it is not out of the place to mention that the assessee should co-operate during the assessment proceedings.
ITA No.3584/Ahd/2015 M/s.Jagson Colorchem Ltd. vs. DCIT Asst.Year - 2012-13 - 4 - 7.3. In view of the above, we restore this issue to the file of Assessing Officer for fresh adjudication after considering the additional evidences filed by the assessee and as per the provisions of law. Hence, the ground of appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the Assessee is allowed for statistical purposes. This Order pronounced in Open Court on 01/02/2019
Sd/- Sd/- ( RAJPAL YADAV ) ( WASEEM AHMED ) JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 01/02/2019
ट�.सी.नायर, व.�न.स./T.C. NAIR, Sr. PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-2, Ahmedabad �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad