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2024 (1) TMI 422 - AT - Income TaxEstimation of commission income - Entitlement to enhanced estimated expenditure - During the course of survey, it was found that the assessee was providing bogus bills of purchase / sales and accommodation loan entries on commission basis - HELD THAT:- As assessee has not been given set off against the amount mentioned in column ‘F’ in the table, for the amount mentioned in column ‘D’ and ‘E’ respectively and Assessing Officer has computed the balance irreconcilable amount, which is wrong. Therefore, assessee is entitled to claim enhanced estimated expenditure from 20% to 50%. Hence, we find merit in the submissions of the ld Counsel to the effect that deduction on account of estimated expenditure @ 20% of the gross commission, should be increased to @ 50% of the gross commission. Therefore, we direct the assessing officer to allow estimated expenditure @ 50% of the gross commission. Therefore, ground No.2 raised by the assessee is allowed partly. Difference in interest income between interest as per Form 26AS and interest income shown in the Return of Income - Whether it will tantamount to double addition? - HELD THAT:- We find merit in the propositions canvassed by assessee that addition on account of difference in interest income between interest as per Form 26AS and interest income shown in the Return of Income, treated as alleged undisclosed interest income from alleged accommodation loan entries of loans to various parties, which is not acceptable. Since the alleged accommodation loan was treated as bogus and assessing officer made estimation addition, hence addition on account of difference in interest income, is tantamount to double addition, hence the same is hereby deleted. Decided in favour of assessee.
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