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We find that the impugned addition of Rs. 10.00 lakhs being the alleged brokerage commission, was made by the AO on the basis of information received during the course of assessment proceedings. The assessee has explained that this commission was reflected in the books of accounts and included in the commission receipt by the assessee and offered to tax. This aspect has been considered by the ld.CIT(A) on the basis of explanation and bank statements furnished during the course of assessment proceedings and found that the addition was being made without any evidence, and therefore, unjustified. Before us also, there is no material to justify action of the AO for making the impugned addition. In a proceeding under section 153C, no addition can be made in the absence of any incriminating material. Undisputedly, there is no material evidence with the AO to make the impugned addition. Therefore, we do not find any infirmity in the order of the ld.CIT(A) on this issue. It is confirmed.

Shanti Prime Publication Pvt. Ltd.

Section 50C, 153C of Income Tax Act, 1961— In the first ground of appeal, the Revenue is challenging deletion of addition of Rs. 10.00 made by the AO on account of alleged brokerage income.

Held that—We find that the impugned addition of Rs. 10.00 lakhs being the alleged brokerage commission, was made by the AO on the basis of information received during the course of assessment proceedings. The assessee has explained that this commission was reflected in the books of accounts and included in the commission receipt by the assessee and offered to tax. This aspect has been considered by the ld.CIT(A) on the basis of explanation and bank statements furnished during the course of assessment proceedings and found that the addition was being made without any evidence, and therefore, unjustified. Before us also, there is no material to justify action of the AO for making the impugned addition. In a proceeding under section 153C, no addition can be made in the absence of any incriminating material.

In ground no.2 and 3, Revenue has pleaded that the ld.CIT(A) has erred in deleting the addition of Rs. 2,54,59,000/- which was added by the AO with aid of section 50C. According to the Revenue, the ld.CIT(A) has erred in admitting additional evidence under Rule 46A and deleting the above addition.

Held that—if the ld.CIT(A) has entertained the notification no.9447 for determining the geographical situation of the land of the assessee, then to our mind, this type of material can be considered by the ld.CIT(A) under Rule sub-rule (4) of Rule 46A, and there cannot be any violation at the end of the ld.CIT(A). Considering all these aspects, we are of the view that the ld.CIT(A) has considered the issue analytically and recorded a categorical finding that the land in dispute was situated beyond 8 kms. and it was not a capital asset on whose transfer capital gain can be assessed in the hands of the assessee.[DCIT, CENT. CIR. 1 (4) AHMEDABAD. VERSUS SHRI RAVJIBHAI MANIBHAI PATEL, SHRI TUSHAR RAVJIBHAI PATEL][2020] 21 ITCD Online (3) [ITAT AHMEDABAD]

We find that the impugned addition of Rs. 10.00 lakhs being the alleged brokerage commission, was made by the AO on the basis of information received during the course of assessment proceedings. The assessee has explained that this commission was reflected in the books of accounts and included in the commission receipt by the assessee and offered to tax. This aspect has been considered by the ld.CIT(A) on the basis of explanation and bank statements furnished during the course of assessment proceedings and found that the addition was being made without any evidence, and therefore, unjustified. Before us also, there is no material to justify action of the AO for making the impugned addition. In a proceeding under section 153C, no addition can be made in the absence of any incriminating material. Undisputedly, there is no material evidence with the AO to make the impugned addition. Therefore, we do not find any infirmity in the order of the ld.CIT(A) on this issue. It is confirmed.

Shanti Prime Publication Pvt. Ltd.

Section 50C, 153C of Income Tax Act, 1961— In the first ground of appeal, the Revenue is challenging deletion of addition of Rs. 10.00 made by the AO on account of alleged brokerage income.