TMI Blog2015 (10) TMI 1586X X X X Extracts X X X X X X X X Extracts X X X X ..... o the AO to submit his remand report and to comment upon the merits of the claim, explanation and submission of the assessee which were not submitted during assessment proceedings. The AO was not allowed to comment upon said claim, explanation and submissions of the assessee on merits and the CIT(A) considered and accepted the same in contravention of Rule 46A(3) of the I.T. Rules, 1962. Thus this issue requires proper examination and verification at the end as to whether the land and development charges were included in the amount of liabilities which was assessed as income of the assessee for the year under consideration on the basis of statement of Shri Sunil Sharma the Director of the company recorded u/s 131. The AO shall also verif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and carefully perused the relevant material placed on record, interalia, assessment order, impugned order, paper book of the assessee spread over 197 pages and written synopsis filed by ld. DR and order of the Hon'ble Jurisdictional High Court of Delhi in ITA No. 121/Del/2014 dated 01/04/2014 in the case of CIT vs. Girnar Infrastructure Pvt. Ltd. As relied by the ld. Counsel of the assessee. 4. The ld. Departmental Representative drawn our attention towards para 3 at page 1 and para 2 at page 2 of the assessment order and submitted that the assessee was asked to submit parawise details of such customers advances amounting to ₹ 4,12,69,480/- and in response to that the assessee submitted the list of persons from whom it claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee company would be after deduction of relevant expenses as shown by the assessee only during first appellate proceedings. The ld. DR pointed out that the CIT(A) went on to consider such submission and explanation of the assessee which were not made before the AO during assessment proceedings and the CIT(A) considered the same without confronting the submissions and explanations of the assessee to the AO, in contravention with Rule 46A(3)(i) of the I.T. Rules, 1962. The ld. DR finally submitted that the impugned order may be set aside by restoring that of the AO and alternatively prayed that this limited issue may be restored to the file of AO for proper verification and examination of this fact that whether the total cost of land and dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to comment upon these explanation and submissions of the assessee. 7. On careful consideration of above submissions of both the sides at the very outset, we note that the assessee raised the issue of allowability of the expenses towards cost of land and development charges in A.Y. 2005-06 during first appellate proceedings. We also note that the CIT(A) did not afford another opportunity to the AO to submit his remand report and to comment upon the merits of the claim, explanation and submission of the assessee which were not submitted during assessment proceedings. The AO was not allowed to comment upon said claim, explanation and submissions of the assessee on merits and the CIT(A) considered and accepted the same in contravention of Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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