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2018 (2) TMI 1591 - AT - Income TaxEstimation of profit on accommodation turnover - CIT-A confirming the addition @ 3% as against 0.57% declared by the assessee - contention of the assessee that commission estimation by the AO is on the higher side when compare to the nature of business and also his gross profit admitted in the earlier years wherein he has derived the GP of less than 1% - Held that:- No merit in the arguments of the assessee for the reason that the assessee himself has admitted before the Investigation Wing that he is involved in providing accommodation entries to various beneficiaries. Though there is no mention of cash component of commission in the survey report, it is an admitted fact that in this kind of transactions the entry provider will derive certain benefits for issuing accommodation entries. AO has rightly estimated reasonable percentage of commission on total accommodation entries provided by the assessee. Though the assessee claims that the commission estimated by the AO is on higher side he failed to justify the gross profit declared in his business in the earlier years with any other comparable case. Therefore, we are of the view that the AO was right in estimating 3% commission on total accommodation entries - Decided against assessee.
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