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2019 (5) TMI 1600 - AT - Income TaxAddition on account of undeclared commission income - accommodation entry provider - HELD THAT:- The commission income with respect to the transaction entered into by the assessee are required to be taxed in the hands of the assessee company, provided the same have already not been taxed in the hands of Sri SK Jain. We direct the assessee to show before the learned assessing officer that commission income earned by Sri SK Jain on these transactions of the accommodation entries have already been offered by him as income in his hands. If the assessee shows that same have been already taxed in the hands of Sri SK Jain, then commission with respect to the above accommodation entries will not be added in the hands of the assessee as it will amount to double addition. If the assessee fails to show that commission income has been offered by Sri SK Jain on these accommodation entries as income in his hands , then the assessing officer is directed to retain the addition of INR 12,000,000 in the hands of the assessee company. Accordingly ground number 1 and 2 of the appeal of the AO is allowed with above direction. Addition u/s 14A - there being no dividend income earned by the assessee during the year - HELD THAT:- As found that assessee has not earned any exempt income during the year and therefore there is no question of making any disallowance u/s 14 A of the income tax act. Therefore we find no infirmity in the order of the learned CIT – A in deleting disallowance. Accordingly ground of the appeal of the AO is dismissed.
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