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2018 (3) TMI 667 - AT - Income TaxDisallowance of commission expenses - income from providing accommodation entries - Weightage rate of commission - Held that:- CIT(A) has restricted the rate of commission at 2% on the basis of his own knowledge without supporting any documentary evidences or relying on any documentary evidences found during the course of search. This is evident from his finding that ‘no set formula or fixed rate of commission in the business activity of providing accommodation entry was prevalent and it was on the basis of need and practice prevalent in the market’. CIT(A) has also not considered the objections of the assessee in respect of the weightage rate of commission of 5.67% computed by the AO. In view of the facts, the objections of the assessee that commission expenses were paid for getting purchase bills etc. need to be considered in the light of the documents seized from its premises. We feel it appropriate to restore the issue in dispute to the file of the Commissioner of Income-tax (Appeals) for deciding it afresh - Decided in favour of revenue for statistical purposes.
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