WALKER CHANDIOK & CO.,NEW DELHI vs. DCIT, NEW DELHI

In view of the above findings reached by this Tribunal in the similar facts and circumstances, and respectfully following the decision of Co-ordinate Bench referred to above, ground No. 1 raised by the assessee is allowed, ground No. 3 is allowed for statistical purposes and the matter is sent back to the file of Assessing Officer for deciding this issue in the light of our decision given in appeal of assessee for A.Y. 2010-11 and ground No. 4 of the assessee is dismissed.

By way of ground No. 2, the assessee has also challenged the direction of the ld. CIT(A) issued to the Assessing Officer to look into the admissibility of rent paid by assessee to M/s. Bhakru & Associates. The contention of the assessee has been that on this issue neither the Assessing Officer made any disallowance in the assessment order nor has the assessee raised this issue in appeal before the ld. CIT(A) and therefore, this issue having not been emerged out of the assessment order, the ld. CIT(A) was not justified to given such a direction which is beyond the subject matter of appeal before him. No counter submissions are made on behalf of the Revenue to discard the submissions made by the assessee. More so, this issue has also been decided by the Tribunal in favour of the assessee in the same set of facts and circumstances in its appeal for A.Y. 2010-11, in view of which, we do not think it justified to sustain such directions of the ld. CIT(A) in the instant case. Accordingly, ground No. 2 of appeal deserves to be allowed.