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TMI Blog2004 (3) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn for the assessment year 1997-98 on October 31, 1997, declaring a total income of Rs. 1,12,30,640. Assessment was completed vide order dated March 22, 2000 under section 143(3) of the Income-tax Act, 1961. The Assessment Officer determined the total income at Rs. 1,13,15,834. The Commissioner of Income-tax, in the capacity of the revisional authority found that certain credits were shown which were accepted by the Assessment Officer on the strength of confirmation. The assessee filed confirmation with GIR/PAN. The revisional authority has passed an order on November 5, 2001, that the source of deposit was not examined with respect to the credit made by 6 persons. 7 per cent, commission was directed to be allowed, instead of 10 per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income-tax (Assessment), Special Range, Jabalpur. The assessee was asked to explain the genuineness of the creditors; in compliance with a direction, confirmation of loan have been furnished, duly signed and giving the permanent account number of the creditors. All the creditors are assessed at Katni. The Income-tax Officer was requested to verify the loan advanced by the persons. In compliance with the said letter, the Income-tax Officer, Katni has serft the reply on March 16, 2000 stating that he could lay hands on 6 files which showed that the loan was advanced by the above parties. The assessee has filed the photocopies of the acknowledgement, and statement of income of some of the persons. Hence, the Assessment Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the citations and paper book. We find there is sufficient force and effectiveness in the arguments submitted by counsel of the assessee. The assessee has paid 10 per cent, commission in compliance with the order of the learned Bench for the assessment year 1989-90 and the same was paid during many previous years as per the agreement signed by the assessee and sole selling agent, i.e., M/s. Gulam Rasool and Co. The payment of commission to sister-concern does not change the nature of expenditure incurred in commercial expediency. Therefore, the order of assessments as regards payment of commission cannot be said erroneous and prejudicial to the interests of the Revenue. Bank of Baroda v. H.C. Shrivatsava [2002] 256 ITR 385 (Bom); K.N. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of the assessee on the basis of submitting confirmation and affidavits along with PAN numbers. The decisions, i.e., CIT v. Orissa Corporation P. Ltd. [1986] 159 ITR 78 (SC); Addl. CIT v. Hanuman Agarwal [1985] 151 ITR 150 (Patna); CIT (Deputy) v. Rohini Builders [2002] 256 ITR 360 (Guj); CIT v. Shanti Swamp [2002] 255 ITR 655 (P & H) assist the claim of the assessee since the assessee has discharged the onus of submitting tax index numbers of the creditors and submitted that the capacity, identity and the source is fully explained to the satisfaction of the Assessing Officer, therefore, no addition is called for and therefore, the Assessing Officer was fully justified for treating the cash credits not as income whereas it is not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication in regards to capacity, genuineness of the transaction and identity, therefore, the order passed by the learned Commissioner of Income-tax-II deserves to be set aside while relying on the decisions in CIT v. Arvind Jewellers [2003] 259 ITR 502 (Guj) and Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83 (SC) because roving enquiry cannot be permitted and there should be a finality of assessment in the interest of justice is a must. There is no different conclusion arrived at by the learned Commissioner of Income-tax while passing the order under section 263 of the Act. The findings of the Commissioner of Income-tax are not definite one, except set aside the order passed by the Assessing Officer for further enquiry and investigati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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