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2018 (9) TMI 1989 - AT - Income TaxEstimated commission of accommodation book entries - Addition @ 10% by AO - CIT(A) accepted contentions of the assessee but reduce estimation of income to @ 2% of total amount of accommodation entries - HELD THAT:- We observe that the estimate provided by the appellant that from such alleged transactions of accommodation entries the assessee received @ .03% to 1% benefit was on very lower side looking into the activities and the risk undertaken by the assessee and thus, the same was rightly dismissed by the ld. first appellate authority. Estimation of commission of 2% of total accommodation entries are concerned, the ld. CIT(A) noted that the payer M/s. Rosy Royal Minerals derived benefit of 6.7% of total amount of alleged entries and taking a reasonable estimate of commission thereon, CIT(A) reduced and restricted the addition to 2% of total amount which is quite reasonable and justified. In view of above, we are in agreement with the observation and conclusion drawn by the first appellate authority and hence, we are unable to see any valid reason to interfere with the same. Estimating of income of the assessee @ 2% as against 10% made by A.O. on the aggregate unexplained cash deposits in the bank accounts - AY 2011-12 - HELD THAT:- We are of the view that the estimate adopted by the ld. CIT(A) @ 2% of total deposits is excessive and the contention of the ld. AR that income from these deposits is 0.15% is also on very lower side which is also not acceptable. Therefore, taking a balancing and reasonable approach, we direct the AO to estimate the commission income from these deposits which are mainly pertaining to the business of discounting of cheques/DD @ 0.50% of total deposits covering up all the possible leakages of Revenue in this regard. Conclusion drawn by the ld. CIT(A) is modified.
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