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2022 (7) TMI 1218 - AT - Income TaxAddition u/s 68 on accommodation entries receipt - addition in the hands of this assessee on protective basis - HELD THAT:- In this case, the assessee is found to be a conduit company providing accommodation entries to various parties. Names of entry operators are also mentioned in the assessment order and the statements are also recorded wherein they have categorically stated that all these entries are accommodation entries. During the year, this company invested in five different companies as share capital - AO made an addition of the accommodation entry amount as well as the concerned commission in the hands of the assessee on productive basis - CIT (A) deleted the addition on protective basis for the reason that on substantive basis these incomes have been taxed in the hands of all the beneficiaries. Naturally when the substantive addition is confirmed by the appellate authorities, we do not find any reason to dislodge the finding of the learned CIT (A) in deleting the addition in the hands of this assessee on protective basis. Commission income at the rate of 2.5% of the accommodation entry - CIT-A deleted the addition - HELD THAT:- We do not find any reason to not to reverse the finding of the learned CIT (A) in deleting the commission income at the rate of 2.5% of the accommodation entry. Assessee is undisputedly an accommodation entry provider and therefore, the commission income requires to be added in the hands of the assessee. Accordingly, ground no. 3 of the appeal is allowed.
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