2016 (10) TMI 1179

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..... of appeal: "The grounds of appeal mentioned herein below are wi thout prejudice to one another. 1 . The Ld AO erred in computing the amount of Accommodation turnover at Rs. 24,89,60,272/- , instead of Rs. 24,16,32,566/- , despite accepting the bifurcated figures of genuine turnover and accommodation turnover provided by the appellant , thus adopting the figure in flated by Rs. 73,27,706/- of accommodation turnover as against the correct figure of such turnover. The CIT (A) erred in confirming it.  2. The Ld AO erred in adopting the rate of 3% for estimating the income of the appel lant on impugned accommodation turnover wi thout br inging any comparable case on record, as well as rejecting the rate of 1% declared by the appella .....

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..... The assessee, before us, has not disputed that it was indulged in providing accommodation bills to certain parties. However, it has been submitted that the estimation of profits at the rate of 3% were very excessive. It was also explained that out of the total turnover of Rs. 32.3 crores, the genuine turnover of the actual business carried out was only Rs. 8.2 crores and profit there from has been declared at Rs. 82,75,831/- which has accordingly been taxed as business income of the assessee. The Ld. A.R. has further submitted that the assessee has declared the income of the accommodation bills at the rate of 1% of the turnover which was actually received by the assessee. That the AO in the impugned assessment order himself has mentioned .....

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..... through the decision of the Tribunal, though we find that there cannot be a fixed criteria to adopt as to at what rate the commission income in such cases can be adopted for turnover, however, considering the facts of the case and submissions of the Ld. A.R., in our view, the estimation of commission income at the rate of 3% in the absence of any evidence, any calculation or other basis or any example of a similarly placed case seems to be on higher side. The assessee, on the other hand, has supported its case while providing all the details including the actual amount of the turnover and the actual amount received by the assessee and the AO has not pointed out any peculiar point on the basis of which the calculation and income offered by .....

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