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Before: SHRI N.K. SAINI & SMT. BEENA PILLAI
ORDER
PER BEENA PILLAI, JUDICIAL MEMBER:
The present appeal has been filed by the assessee against the order of the ld. CIT(A)-XXV , New Delhi dated 28/02/2011 on the following grounds of appeal: “On the facts and in the circumstances of the case, the authorities below have erred in making/confirming illegal addition of Rs. 9,87,325/- as notional income of the appellant and the illegal addition is liable to be deleted with consequential relief to the appellant after hearing both sides.”
The brief facts of the case are as under:
The assessee is an individual and had filed its return of income for the relevant year under consideration on 31/10/2006. The case was selected for scrutiny and statutory notice u/s 143(2) were issued and served upon the assessee.
During the course of the assessment proceedings the AO called for various details in respect of the commission income, personal drawings for household expenses, and the alleged profit striping as observed by the ld. AO. As no details could be filed, the ld.AO, made an addition and completed the assessment at Rs. 12,32,700/- .
Aggrieved by the order of the ld. AO the assessee preferred an appeal before the ld. CIT(A). Before the ld. CIT(A) the assessee again could not submit any documents to substantiate the income earned under commission, personal drawings for household expenses and the addition made by the ld. AO under the head “profit striping”. The ld. CIT(A), therefore, confirmed the additions made by the ld. AO.
Aggrieved by the order of the ld. CIT(A) the assessee is in appeal before us only on the addition made under the head “profit striping”. The ld. AR submitted that assessee is a broker/agent and towards in food grains like rice, sugar and pulses, etc. The assessee during the year had a turnover of Rs. 14,10,67,447/- and had declared gross profit @ 1.03%. From the paper book filed by the assessee before us, we note that at page no. 3, 13 and 41 were not filed before the authorities below. To our mind these documents would have relevance in deciding the issue consideration. We, therefore, following the principle of natural justice set aside the issue to the ld. AO for verifying the details and reconsider the addition made by the AO on the basis of the documents at these pages. The ld. AO may call for any further details so required for deciding the issue. The assessee is also at liberty to file all necessary documents for reconsideration of the issue by the ld. AO. The grounds of the appeal are statistically allowed. Hence, the appeal is statistically allowed. The order is pronounced in the open court on 09.03.2016 Sd/- Sd/- (N.K. SAINI) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09.03.2016 *Kavita, P.S.