Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 565 - ITAT KOLKATA

2015 (6) TMI 565 - ITAT KOLKATA - TMI - Nature of Commission earned - treated as Income from Other Source or Business income - Held that:- The assessee in each and every case was provided opportunity on several occasions to prove that the said miscellaneous income was in fact the commission income received in lieu of the services provided to various persons. The fact of notices being returned back unserved or denial by Shri Pawan Kumar Kedia and Sri R.K.Khetrapal and reply of Rawmet Commodities .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing of A.O. that commission earned by assessee is assessable as “Income from Other Source” - Decided against assessee.

Disallowance of set off of business loss comprising current depreciation and unabsorbed depreciation against the Commission Income - Held that:- In the circumstances and facts of the case order of ld. CIT(A) is not a speaking order and accordingly order of ld. CIT(A) on this issue is set aside to his file to decide the issue denovo and pass a speaking order and to dea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Yadav & Hon ble Sri B.P.Jain,JJ For the Petitioner : Shri V.N.Purohit, FCA & Shri H.V.Bharadwaj, ACA For the Respondent : Shri Saboorul H.Usmani, JCIT, Sr.DR ORDER Per Shri B.P.Jain, AM This appeal of the assessee arises from the order of ld.CIT(A)-XX, Kolkata dated 02.09.2013 for Assessment Year 2003-04. 2. The assessee has raised the following grounds of appeal : 1. That the CIT(A) has erred in confirming the finding of A.O. that commission of ₹ 1,20,87,649/- earned by assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

poses. 4. That the appellant/assessee craves leave to add, to amend or withdraw all or any of the above grounds on or before the hearing of the appeal. 3. As regards ground no.1 of the assessee the brief facts of the case as per AO s order at pages 2 to 6 are reproduced herein below :- The P&L a/c of the assessee include receipts on account of sale and misc.income for ₹ 3,73,63,369/- and ₹ 1,20,87,649/- respectively. The details about the nature of misc. income have not been subm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Work with Usha Ispat/MSIC and Jindal Vijaynagar of LAM coke 9,43,525 Total 24,37,602.54 Rawment Commodities (P)Ltd. 3C Oriental House, 6C, Elgin Road, Kolkata-700020. 28.02.03 Co-ordination & Liasioning work with Ispat Metallics Ltd. for sourcing of coke arrangement of shipment, supervision of discharge, movement and delivery of the same to Ispat Metallics Ltd. 25,00,000.00 31.03.03 Co-ordination & Liasioning work with Supplier and Port Authorities for Chrome Ore/Concentration, Qty. 4468 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

WTG as per the terms of Agreement dated 30.03.02. 8,50,000.00 04.03.03 Sales Commission of services rendered in the sale/marketing of 1 No.1000/KW/1250 KW, Wind Turbine Generators to Leo Fasteners, Pondicharry, Sastha Paper Mills Ltd. ₹ 8,50,000/- per WTG as per the terms of Agreement dated. 17,00,000.00 Total 25,50,000.00 To verify the above facts, letter u/s 133(6) of the Act were written on the addresses supplied by the assesee to following parties and the outcome of each of them is bei .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Sarani Branch, Cheque handed over after 31.03.2003 25,00,000.00 25,00,000.00 Cheque No.010679 dated 31.03.2003 of HSBC,Shakespeare Sarani Branch, Cheque handed over after 31.03.2003 25,00,000.00 25,00,000.00 Cheque No.010680 dated 31.03.2003 of HSBC, Shakespeare Sarani Branch, Cheque handed over after 31.03.2003 3. M/s. Rawmet Resources on 18.01.2005 Bill raised Amount paid Date of issue of cheque and cheque details For 14,94,077.54 10,00,000.00 Cheque No.017701 dated 24.01.2003 of HSBC, Shakesp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ken. 5. A.K.Verma, Ispat Industries Ltd.. AGM, Shipping on 10.02.2005 Reply received stating that Mr;.A.K.Verma left the job. 6. Mr.B.ravi Kumar, Visakhapattnam Steel Plant, on 10.02.2005 Came back unserved on 04.03.2005. On receipt of reply a letter was written to the assessee on 07.04.2005 intimating the result of inquiry as mentioned and also required to show cause why adverse inference should not be taken. 7. Mr.Pawan Kr.Kedia M/s. Jindal Vijayanagar Co.Ltd. on 10.02.2005 Reply was received .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2005 stating that no direct transaction with M/s. Rowmet Resources during F.Y. 2002-03. It was informed that low ash metalical coke measuring 24908 MT and 15134 MT was purchased through MSTC Ltd. from Sudami Metal GMPH. On receipt of reply a letter was written to the assessee on 07.04.2005 intimating about the reply submitted by the assessee and also the result of inquiry as mentioned and also requested to showcause why adverse inference should not be taken. On 05.07.2005, the assessee submitted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with the Indian companies like Usha Ispat, Jindal etc. and the supply of material and payment of relevant consideration were between the Indian Company and foreign company. Rowmet was acting as a facilitation agent for valuable consideration for its foreign principal since they had no offices in India. Our services were restricted to facilitating Rowmet in course of its rendering services for foreign principal and leave our consideration was received from Rowmet and not from the above mentioned .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as asked to further to submit details regarding person responsible for liasioning job, details of expenses made to earn commission income and in its reply the assessee submitted on 13.03.2006 that the services relating to commission earning activities were not confined with a single designated person. On the other hand the commission earned was the result of collective labour of the employees of the co. under the guidance of the management of the co. it has already been stated that the expenses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee has tried to say that by making expenditure of less than ₹ 58,000/- approximately, commission of ₹ 1,20,87,469/- have been earned. It is worth to mention that expenditure of ₹ 58,000/- approximately is not exclusively for earning commission rather it is cumulative to the main business of manufacturing and sale of sponge iron for ₹ 3.73 crs. Approx. The assessee has not shown this commission income under the head commission but the same has been shown as Misc. incom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

was fear that he may be called u/s 131 by using summon for examination. Moreover, it is also pertinent to mention that in P&L a/c. the assessee has debited only ₹ 3,78,000/- under the head salary and total administrative expenditure is ₹ 13,40,349/- against turnover of ₹ 4.98 crores approximately which include misc. income (commission for ₹ 1.20 crores). The earning of commission by doing liasioning job, demands frequent travelling and visiting and staying at various .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s to any of the persons from whom commission to ₹ 1.20 crs. Is said to have been received because commission is related to rendering of services. The mere confirmation from some of the parties who claimed to have paid commission to the assessee does not prove that the assessee had actually earned service charges because rendering of services are not proved and in absence of any evidence/circumstantial evidence leading to satisfaction that services have actually been rendered, the income of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. The ld. DR, on the other hand, relied upon the orders of both the authorities below. 6. We have heard the rival contentions and perused the facts of the case. The undisputed fact in the present case are that the assessee has declared ₹ 1,20,87,649/- under the head Miscellaneous Income but no nature of the said miscellaneous income was explained in the return of income. During the course of assessment proceedings it was submitted by the assessee that the same was commission income receive .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y the assessee. The assessee in each and every case was provided opportunity on several occasions to prove that the said miscellaneous income was in fact the commission income received in lieu of the services provided to various persons. The fact of notices being returned back unserved or denial by Shri Pawan Kumar Kedia and Sri R.K.Khetrapal and reply of Rawmet Commodities Pvt. Ltd. and M/s.Rawmet Resources were informed to the assessee and due opportunities was given to the assessee to prove t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arious courts of law cannot come to the help of the assesee. Accordingly we find no infirmity in the order of ld. CIT(A), who has rightly confirmed the action of AO. Thus ground no.1 of the assessee is dismissed. 7. As regards ground no.2 the brief facts of the case are that the AO did not allow set off of depreciation of ₹ 1,63,50,515/- in fact (Rs.1,62,07,054/-) as claimed by the ld. Counsel for the assessee being the current years depreciation at ₹ 1,25,47,302/- and brought forwar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d. CIT(A) and also the decisions in the case of Suresh Industries Pvt. Ltd in ITA No.5374/Mum/2011 by ITAT Mumbai E Bench dated 10th October, 2012. It was argued that the ld. CIT(A) has not discussed with the decisions of various courts of law relied upon in his order in para 8.2. The ld. Counsel for the assessee prayed to allow the depreciation as well as the unabsorbed depreciation in view of the decisions relied upon before the ld. CIT(A)as well as before us. 9. The ld. DR, on the other hand, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f convenience :- 8.2. I have perused the assessment order and considered the submission of the appellant. The fact of the case is that the appellant set off depreciation of ₹ 1,26,90,763/- against its income. However, the A.O. did not allow the same as there was no business income available with the appellant in the assessed income. After going through the facts and circumstances of the case, the A.O. was justified in not allowing the set off of depreciation as per section 32(2) of the I.T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version