TMI Blog2016 (2) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... issal of its ground against brokerage payment by the learned Commissioner (Appeals). When the assessee was not only assisted by a professional well acquainted with provisions of the Act, not only before the Assessing Officer in the course of remand proceeding but also before the first appellate authority. Assessee has not retracted her statement given under section 131 at any stage. In these circumstances, we are unable to accept assessee’s claim with regard to dismissal of its ground against brokerage payment by the Commissioner (Appeals). Having held so, we proceed to examine assessee’s alternative claim, if at all, any disallowance is to be made it should be restricted to ₹ 61,71,082. As far as the quantum of disallowance i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the addition of ₹ 89,19,677, towards deduction claimed on account of payment of brokerage. 3. Briefly stated the facts are, assessee an individual is engaged in the business of trading in steel. For the assessment year under consideration, assessee filed her return of income on 29th September 2009, declaring total income of ₹ 76,22,674. During the assessment proceedings, the Assessing Officer, while verifying the Profit Loss account, noticed that assessee had debited a sum of ₹ 1,18,68,677 towards brokerage payment. He, therefore, called upon the assessee to furnish the details of parties to whom the brokerage was paid and the nature of services rendered by them. As observed by the Assessing Officer, the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer on the basis of information obtained from various parties, to whom assessee claimed to have made brokerage payment, sought assessee s response and in a statement recorded under section 131 of the Act, assessee admitted that certain brokerage payments were actually accommodation entries and bogus bills were made by the concerned parties. She quantified such brokerage payment at ₹ 61,71,082. On the basis of the admission made by the assessee in the remand proceeding, Assessing Officer submitted the remand report recommending disallowance of brokerage payment. In view of the observations made by the Assessing Officer in the remand report, assessee vide letter dated 4th March 2013, filed before the first appellate authority wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer, had categorically stated that brokerage payments are accommodation entries only and actually no brokerage was paid to the concerned parties. He submitted, assessee having decided to withdraw the ground on the issue of addition of brokerage payment, she cannot agitate the issue again before this forum by putting the blame on the Assessing Officer. 7. We have considered the submissions of the parties and perused the material available on record. There is no dispute to the fact that vide letter dated 4th March 2013, filed before the first appellate authority, assessee has withdrawn the ground challenging the addition of brokerage payment of ₹ 89,19,677. Learned Counsel appearing for the assessee had also accepted the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement recorded from the assessee under section 131 by the Assessing Officer, she categorically admitted that the brokerage payments are actually accommodation entries. Thus, upon consideration of such facts and materials, the Assessing Officer observed that brokerage payment to the tune of ₹ 61,71,082, is not genuine, hence, required to be added. Thus, from the aforesaid facts, it is very much clear that assessee was given full opportunity to explain her case on the basis of material available before the Assessing Officer and the assessee being conscious of the fact that the parties to whom she claimed to have paid brokerage have admitted that they had not provided any services to the assessee and only provided accommodation b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for addition of the said amount. Further, on a perusal of the impugned order of the learned Commissioner (Appeals), it is noticed that in letter dated 29th August 2013, filed by the assessee, she had accepted that brokerage payment to the tune of ₹ 61,71,082 are actually accommodation entries. In view of the aforesaid factual position, which is also accepted by the Assessing Officer in the remand report, we are of the considered opinion that out of the total brokerage payment of ₹ 89,19,677, an amount of ₹ 61,71,082 deserves to be disallowed being non genuine as per the facts and material available on record. Thus, assessee gets relief of ₹ 27,48,595. 8. In the result, appeal stands partly allowed. Order pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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