DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 5(2)(1), BANGALORE vs. SHRI. HARSHA SRINIVAS THAMBI, BANGALORE

The order of the learned CIT (A) is opposed to the law and facts of the case. Whether on the facts and circumstances of the cases and in law, the Ld. CIT (A) was right n admitting additional evidences without giving any reason for the same. Whether on the facts and circumstances of the cases and in law, the Ld. CIT (A) was justified not giving any opportunity to the Assessee Officer (AO) before deciding the appeal by admitting additional evidences and thus violating the provisions of rule 46A of the Income Tax Rules, 1962. Whether on the facts and circumstances of the cases and in law, the Ld. CIT (A) was justified in setting aside the assessment order for verification to be made by the AO and thus acting beyond the power granted to him under section 251 of the Income-Tax Act, 1961. For these and other grounds that may be urged upon at the time of hearing, it is prayed that the order of CIT (A) in so far as it relates to the above grounds, may be reversed and that Assessing Officer may be restored. The appellant craves leave to alter, amend or delete any of the grounds mentioned above and / or add any new grounds on or before hearing.

In the course of hearing, it was submitted by learned DR of the Revenue that as per the impugned order, learned CIT(A) has restored the matter back to the file of AO which is beyond the powers of learned CIT(A). Hence, the matter should be restored back to the file of CIT (A). Learned AR of the assessee supported the order of CIT(A).

We have considered rival submissions. First of all, we reproduce relevant para from the order of CIT(A) i.e. from pages 9 and 10 only of his order. This reads as under: “Having considered the fact & circumstances and explanation placed on records, it is apparent that the impugned disallowances have been made due to the non-consideration of the taxation, already suffered on the share of profits, and the same is available / verifiable from the department system / records. The Assessee has submitted certain documents (including CPC intimations) pertaining to the firms M/s Darshan International and M/s Darshan Pixcel Prints LLP, which are placed on records. In this view of the matter the assessee's submissions cannot be rejected and the grounds of appeals are prima- facie allowable. The AO is accordingly directed to take appropriate rectificatory action, after due verification of the respective firm's statement of income / returns of income filed for the period under consideration, the details of which shall be produced by the Assessee,