RAMESH KUMAR KHAITAN,KOLKATA vs. THE ITO, WD-54(2), KOLKATA, KOLKATA

The only issue in this appeal of assessee is against the order of CIT(A) confirming the addition made by AO by disallowing commission expenses of Rs.6,30,510/-.

I have heard rival submissions and gone through facts and circumstances of the case. I find that the assessee is an individual and his main source of income is by way of commission from LICI, Unit Trust of India etc. As per the TDS certificate the total commission earned by the assessee is at Rs.8,08,553/- and TDS deducted is at Rs.60,031/-. The assessee has declared net commission income at Rs.2,86,846/-. The assessee vide his letter dated 07.11.2008 admitted that the commission received was for an amount of Rs.9,17,356/- including TDS and out of the same commission was also paid to various persons amounting to Rs.6,30,510/-. Ld. Counsel for the assessee before us stated that the CIT(A) has not adjudicated the issue at all and he has dismissed the appeal of the assessee ex parte by stating that repeatedly assessee is a non-compliant and not willing to produce commission recipients. I have gone through the order of CIT(A) and noticed that the order of CIT(A) is ex parte order and none was present from the assessee’s side. I am of the view that one more opportunity be given to the assessee to 2 Ramesh Kr. Khaitan AY 2006-07 explain the commission payments to various parties. Accordingly, I set aside this issue to the file of CIT(A) for re-adjudicating the same after allowing opportunity of being heard to the assessee. The appeal of assessee is allowed for statistical purposes.

In the result, the appeal of assessee is allowed for statistical purposes.

Order is pronounced in the open court on __________. Sd/- (Mahavir Singh) Judicial Member Dated :10th December, 2015 Jd.(Sr.P.S.) Copy of the order forwarded to: