TMI Blog2004 (1) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... by B.C. PATEL C.J.-The appellant, who failed before the Commissioner of Income-tax (Appeals) as well as the Income-tax Appellate Tribunal, has approached this court, inter alia alleging that the finding recorded by the Assessing Officer on page 21 has not been considered either by the Commissioner of Income-tax (Appeals) or by the Income-tax Appellate Tribunal and, therefore, in the opinion of counsel, in view of the decision of the apex court in the case of CIT v. Indian Woollen Textiles Mills [1964] 51 ITR 291, this would be a question of law as the relevant facts have not been taken into consideration by the authorities below. It was also submitted by learned counsel that it is open for the Assessing Officer to consider the reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k for interest-free security from the tenants, therefore, the monthly rent substantially reduces. It is in view of this the brokers are demanding more commission to compensate their loss due to fixation of low monthly rent. It is also noted that the assessee's case cannot be accepted because in the case of brokers, Trilok Chand, Rajender Parkash, Dayarani, the commission has been paid amounting to Rs. 8,00,000 each in respect of space given on lease to M/s. Oracle Software on the rent of Rs. 17,50,000 while advance rent of Rs. 10,50,000 and interest-free security has been received to the extent of Rs. 42,00,000. Here commission has been paid equivalent to 1 1/3 times the monthly rent. A similar example is quoted about another estate agent w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Assessing Officer in his assessment order has pointed out with regard to five parties the alleged excess amount by way of brokerage that has been paid to the tune of Rs. 41,84,947. The total monthly rent from these five parties would be in the vicinity of Rs. 85,00,000. Thus, the yearly rent would be in the vicinity of Rs. 10,20,00,000. For this fixed income of Rs. 10,20,00,000 per annum, the excess brokerage allegedly paid is in the sum of Rs. 41,89,947. Considering the figures, it appears that the amount of brokerage is paid at the rate of 1 1/3 times the monthly rent. As against this, the benefits secured are also required to be taken into consideration as also the loss, which would be suffered by the brokers on the lower rate of m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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