Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 1192 - AT - Income TaxCommission charged towards accommodation entries provided - CIT(A) restricting the quantum of commission at the rate of 0.6% based on the average of the past four years profits - HELD THAT:- Estimation as made by CIT(A) was in accordance with average profits shown in earlier 4 years. Even if the transactions were sham transactions, the estimation, in our considered opinion, was to be on some rational basis. The basis as adopted by Ld. CIT(A) was more rational and plausible one. Therefore, no fault could be found in the said estimation. Estimation of income on contract receipts and commission income - CIT(A) has merely gone by the fact that the aforesaid receipts would be business income of the assessee keeping in view assessee’s main objects - he has overlooked the fact that no estimation of income was made by Ld. AO against these transactions and the estimation was only with respect to sale & purchase transactions. These items, as noted by Ld. AO, were separately credited to Profit & Loss Account and hence, constitute separate stream of income for the assessee - a separate estimated income against these two items would certainly be required. We make the estimation @8% for both these streams of income.
|