Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 695 - AT - Income TaxEstimation of commission income on the receipts debited in bank account of the assessee - rate of commission applied on accommodation entry bills - AO applied commission income @ 2% on the deposits found in the bank accounts - contention of the assessee is that Hon’ble Bombay High Court for assessment year 2003-04 has restricted the commission income @ 0.15% of the turnover - HELD THAT:- We find that no stay has been obtained by the Department on the operation of the order of the Tribunals in other cases including the finding of Hon’ble High Court in the case of the assessee for assessment year 2003-04 [2016 (11) TMI 1668 - ITAT MUMBAI] and [2020 (6) TMI 304 - BOMBAY HIGH COURT] wherein @ 0.15% of the commission income has been upheld. We respectfully following the finding of the Hon’ble Bombay High Court, the Assessing Officer is directed to restrict the commission income @ 0.15% of the total turnover of the assessee. Reducing the transfer entries amount in bank account out of gross receipts for estimating the commission income - We find that during the assessment proceedings, the Assessing Officer asked the assessee to provide necessary evidence in support of the claim that no commission was charged in case of said transfer entries. However, the assessee failed to provide any such evidence before the Assessing Officer. The assessee has neither filed any such evidence before the Ld. First Appellate Authority nor before us and therefore in such circumstances, the claim of the assessee cannot be accepted the ground raised by the assessee is accordingly dismissed. Allowance of 50% of the expenses claimed by the assessee in the return of income - assessee has also filed Nil return of income and claimed expenses against the revenue shown from the business income - Since, the facts and circumstances of the assessee are identical in the other group cases wherein also addition for commission income from accommodation entry income has been assessed therefore, respectfully following the finding of the Tribunal [2016 (11) TMI 1668 - ITAT MUMBAI] we direct the AO to allow 50% of the expenses against the commission income. The ground of the appeal of the assessee is accordingly allowed.
|