PRABHAKAR RAGHUNANDAN,CHENNAI vs. ACIT, CHENNAI

This appeal is filed by the Assessee, aggrieved by the order of the Learned Commissioner of Income Tax(A)-15, Chennai dated 25.01.2017 pertaining to assessment year 2012-13.

As far as the Ground Nos.1 & 2 regarding non-providing of sufficient opportunity of being heard by the Ld.CIT(A) is concerned, the Counsel for the assessee submits that these two grounds are not pressed. Thus these grounds are dismissed as not pressed.

The next ground is that the Ld.CIT(A) erred in upholding the addition to the extent of ` 17,97,490/- towards expenditure incurred by the assessee for earning income from other sources.

In this case, the assessee declared income for running the Guest House at `5,94,000/- and claimed the exorbitant expenditure of `20,97,490/- comprising of salary & bonus, Travelling expenses, repairs, and General expenses. The main grievance of assessee in his appeal is with regard to the above additions made by the ld. Assessing Officer on account of non production of bills/vouchers for incurring of expenditure and payment of the same. Aggrieved, the assessee carried the appeal before the Ld.CIT(A). On appeal, the Ld.CIT(A) had given a relief of `3 lakhs towards payment of salary to one person, Sh. M.Bhaskar and confirmed the disallowance of `17,97,490/-. Against this the assessee is in appeal before us.

We have heard both the parties and perused the material on record. Before us, ld.A.R pleaded that one more opportunity to be given to the assessee to produce necessary details before the A.O. so as to support the claim of assessee. We accede the requests of ld.A.R . Accordingly, we set aside the order of lower authorities and direct the AO to give one more opportunity to the assessee to produce necessary details in support of the claim of the assessee, thereafter to pass fresh order in accordance with law.

In the result, the appeal of assessee is partly allowed for statistical purposes. Order pronounced in the open court on 22nd June, 2017.