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2016 (5) TMI 638 - AT - Income TaxEstimation of rate of commission earned on the accommodation cheques - Held that:- as a result of search and survey, the AO has found that assessee was engaged in giving accommodation entry on which assessee has earned commission income of 5 to 7%. Accordingly the AO estimated assessee’s income in the form of commission @5% on the amount of cheques issued. In an appeal filed by the assessee before CIT(A), the CIT(A) after consideration entire seized material as well as statement of various persons recorded during search came to the conclusion that assessee has earned commission income of 3%. Thereafter CIT(A) also allowed expenses of 20% of gross commission, thus, arrived at net commission of ₹ 2.6% as against commission income of 0.4% as offered by the assessee. We found that CIT(A) has dealt with the issue in great detail and after considering entire material on record reached to the finding that estimation of commission @3% on cheque amount and 20% on expenditure will be fair and reasonable. Nothing was brought on record so as to persuade us to deviate from the findings recorded by CIT(A) for arriving at this conclusion. Accordingly, we do not find any reason to interfere in the order of CIT(A) for upholding the net commission to the income of 2.4%. In view of the above, ground taken by the assessee with regard to estimation of commission rate are hereby dismissed.
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