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Income Tax Appellate Tribunal, “D” BENCH, CHENNAI
Before: SHRI A. MOHAN ALANKAMONY & SHRI V. DURGA RAO
आदेश /O R D E R
PER V. DURGA RAO, JUDICIAL MEMBER:
This appeal filed by the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-III, Chennai, dated 30.12.2013 relevant to the assessment year 2007-08.
Facts in brief are that the assessee, a private limited company, filed its return of income declaring a total income of `2,22,24,942/-. The return filed by the assessee was processed under Section 143(1) of the Income-tax Act, 1961 (in short 'the Act').
Subsequently, after due process, the assessment was completed under Section 143(3) of the Act. In the assessment order, the A.O., while discussing the issue involved in this appeal, observed that the assessee-company has shown a sum of `1,03,54,011/- as “other income” in the Profit & Loss account for the year ended 31.03.2007.
The assessee-company is also doing joint-venture business with Wahab Chambers Bangalore. This has not been reported in the Audit Report. The assessee-company has also not produced any details of account with regard to the same. In view of the above, the A.O. has estimated 10% of such income as expenditure and 90% of such income, which works out to ` 93,18,610/-, treated as income from other sources.
The assessee carried the matter in appeal before the Ld. CIT(Appeals). The Ld. CIT(Appeals) without considering the issue in detail, simply deleted the addition to the extent of `93,18,610/-.
Being aggrieved, the Revenue is in appeal before us. The Ld. D.R. has submitted that in his appellate order, the Ld. CIT(Appeals) has not discussed this issue at all. It has to go back to the A.O. because no details were submitted before the A.O.
On the other hand, the Ld. A.R. strongly supported the order passed by the Ld. CIT(Appeals).
We have heard both sides and perused the records and gone through the orders of the authorities below. When a sum of `1,03,54,011/- has been shown as “other income” by the assessee, no details were produced before the A.O. As per the A.O., this amount was not reported in the Audit Report. The Ld. CIT(Appeals) without considering the details, simply deleted the addition made by the A.O. We, therefore, set aside the order passed by the Ld. CIT(Appeals) and remit the issue back to the file of the A.O. to examine the issue afresh, after considering the details filed by the assessee and after giving reasonable opportunity of being heard to the assessee.
In the result, the appeal filed by the Revenue is allowed for statistical purposes.
Order pronounced on Friday, the 20th of March, 2015 at Chennai.