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2012 (9) TMI 326 - AT - Income TaxTreatment of TDS amount as actual income of the assessee company - Addition by applying 4% commission on debit and credit entries - the assessee did not conduct land development work for M/s. PACL India Ltd. and PGF Ltd. - CIT deleted the additions - Held that:- It is an established proposition of law that result of past years under similar facts is the best guidance for estimating the income, thus under these circumstances the CIT(A) was justified to take assistance of the immediately previous assessment year to estimate the profit of the assessee. There is no dispute that in the assessment year 2007-08 on identical issue arose wherein CIT(A) has deleted the addition made in respect of TDS amount and addition made on account of commission has been restricted to 2.24% of the gross receipt shown in the profit and loss account from M/s. PACL India Ltd. and others. As the revenue has not questioned the first appellate order for the assessment year 2007-08 on an identical issue under similar facts before the Tribunal, thus the CIT(A) has rightly deleted the addition made on account of TDS treating the amount claimed from M/s. PACL India Ltd. and PGF Ltd. as real income of assessee and in restricting the addition made on account of 4% commission on debit and credit entries regarding providing accommodation entries to the said companies to 2.24% of the gross receipt shown in the profit and loss account keeping in view the precedent of last assessment year 2007-08 under similar facts which remained unquestioned by the revenue - in favour of assessee.
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