Gewinn Consulting vs Income Tax Officer

PER VIKAS AWASTHY, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of Additional/Joint Commissioner of Income Tax (Appeals)-2, Mumbai [in short ‘the CIT(A)’] dated 15.11.2025, for Assessment Year 2016-17.

Shri Rahul Kumar Jha, appearing on behalf of the assessee submits that the assessee is a partnership firm in existence since 2014. The assessee is a sales agent in real estate business. The assessee provides leads/information to builders of prospective buyers and vice versa for which the assessee is remunerated by way of commissions/brokerage. During the course of assessment for AY 2016-17, the Assessing Officer (AO) made addition of Rs.10,06,005/- u/s.68 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Further, the AO disallowed commission/brokerage paid by the assessee amounting to Rs.20,83,911/-. The assessee had furnished all the relevant documents to substantiate payment of commission but the AO without appreciating the documents placed on record disallowed the brokerage paid by the assessee. Likewise, the assessee explained that Rs.10,06005/- was received through capital account of Shri Saurav Kalra, partner. The AO without appreciating the documents furnished in support of the amount received treated the amount as unexplained cash credit. The ld. Counsel submits that the additions have been made by the AO without considering the documents on record.

Per contra, Shri Manoj Kumar, representing the Department vehemently defended the impugned order prayed for dismissing assessee’s appeal. The ld. DR reiterates findings of the CIT(A) and the AO.

Both sides heard, orders of the lower authorities examined. The assessee in appeal has assailed the addition of Rs.10,06,005/- u/s.68 of the Act and disallowance of commission Rs.20,83,911/-allegedly paid by the assessee. Considering entire facts of the case, I deem it appropriate to restore both the issues back to the AO for denovo examination. The AO shall examine the documents furnished by the assessee in support of both the aforesaid additions and shall pass speaking order after affording reasonable opportunity of making submissions to the assessee, in accordance with law.

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.