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2023 (11) TMI 843 - ITAT DELHIEstimation of commission income at 0.60% on accommodation entries - no evidence was furnished to justify the fact that the assessee was indeed carrying on any business - No details of persons from whom monies were received and no details of persons to whom payments were made were furnished by the assessee. Accordingly, the ld. AO concluded that the entire transactions reflected in the said bank statement are mere transactions carried out by the assessee in the capacity of an entry operator - HELD THAT:- As the assessee was not able to buttress his arguments by filing cogent documentary evidences even to prove that it is engaged in some business activity and that the credits and debits in the aforesaid bank account are business transactions. In these facts and circumstances, we do not deem it fit to interfere in the order of the ld. CIT(A) upholding the estimation of commission income @ 0.60% on total bank transactions. Accordingly, the addition made by the ld. AO is hereby upheld. Addition to income of TDS u/s 194A on interest income earned - Since no interest income was shown by the assessee in the return of income, this sum was added to total income by the AO while completing the assessment - Even before us, we find that no evidence has been filed by the assessee or by his authorized representative to justify the fact as to whether this interest income has been included in the total turnover. In any case, it is not in dispute that the amounts received from the aforesaid four parties represent interest income only which needs to be assessed separately under the head ‘Income from other sources’. Once the receipt represents interest income which has been subjected to deduction of tax at source u/s 194A of the Act by the payers, then it cannot be part of total alleged business receipts as stated by the assessee and the said interest income is to be taxed separately under the head ‘income from other sources’ which has been rightly done by the lower authorities. Hence, we do not find any infirmity in the action of the lower authorities in this regard. Accordingly, the addition is hereby upheld. Disallowance of excess depreciation - We have already held that the assessee is not carrying on any business. Accordingly, it would not be entitled for depreciation u/s 32 of the Act. In any case, this issue does not arise out of the impugned order of the ld. CIT(A) before us. Hence, ground No. 9 raised by the assessee is dismissed. Assessee had disclosed a sum as returned income under the head ‘Income from business.’ - Since we have already held that no business is carried on by the assessee and it has been merely providing accommodation entries to various parties to earn commission income thereon, thus, business income voluntarily offered to tax by the assessee should not be brought to tax. Hence, we hold that this sum of ‘Income from business.’ is available to the assessee for telescoping benefit and the same would be telescoped with the aforesaid additions confirmed hereinabove. AO is hereby directed to give credit of Rs 1,48,380/- while determining the income of the assessee.
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