TMI Blog2017 (2) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of convenience, in the light of the preponderance of probabilities, is in favour of the assessee. Commission on accommodation entries - considering the nature of transactions and the acceptance by the assessee being an entry provider, the impugned transactions have to be considered in the light of the acceptance of the assessee. Don t shoot the messenger . The assessee is earning commission by providing such accommodation bills and in our considered view and the understanding of the facts, the only addition that can be made on the given facts is the commission earned by the assessee by providing such accommodation entries. Considering the peculiarity of the facts of the case in hand, addition of the commission @ 3% of the accommodation entries should meet the ends of justice. We, accordingly, direct the A.O. to treat 3% of the accommodation entry as the income of the assessee. Appeal filed by Assessee is allowed. - ITA. No. 740/AHD/2013 - - - Dated:- 7-2-2017 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER For the Appellant : Shri Dharmesh Shah with Kulin Mehta, AR For the Respondent : Shri K. Madhusudan, Sr. D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellate order is not at all a speaking order. Accordingly, he urged the Bench that the matter be restored before the CIT(A) on merits. He fairly conceded that he will not raise the legal issues. On going through the case records and on hearing the ld. CIT-DR we find that none of the authorities below have decided the issues on merits and also made addition without providing reasonable opportunity of being heard. Keeping in view the principles of natural justice in mind, we set aside the two issues on merits to the case of the CIT(A). Accordingly, the CIT(A) after taking a remand report from the Assessing Officer will decide after providing reasonable opportunity of being heard to the assessee. 4. A perusal of the aforementioned observation and the findings of the Coordinate Bench show that the assessee has conceded more than ones so far as the issue relating to the reopening of the assessment is concerned. We also find that the Co-ordinate Bench has set aside the assessment to the files of the A.O. because none of the authorities below have decided the issues on merits and made the impugned additions. 5. On such observations and findings, we fail to unders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of the ld. counsel that the assessee is a man of meager means and, therefore, cannot be said to have earned such exorbitant unaccounted income. Ld. Counsel once again stated that the assessee is merely an entry provider earning commission on such accommodation entries. 13. The ld. D.R. strongly supported the findings of the lower authorities. It is the say of the ld. D.R. that the assessee has grossly failed in discharging the burden cast upon him by the provisions of section 68 of the Act. Therefore, there is no error or infirmity in the findings of the ld. CIT(A). 14. Before proceeding further, certain facts emanating from the record before us need special mention. In his statement recorded u/s. 131 of the Act on 01.12.2012, the assessee had explained that since past 10 years he is employed in China from where he is drawing salary of ₹ 10.80 lacs (in Indian Currency). It is also seen that the assessee has specifically stated that he is not maintaining any bank account in China and was drawing salary in cash. It is also found that in Indian rupees, the total expenditure of the assessee was 6.50 lacs. These facts show that the assessee was a man of smal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uine transaction and that the assessee has never taken any such loan or given any loan to these parties and that the transactions are only in the nature of accommodation transaction. By engaging in such transaction, the beneficiaries tend to convert their unaccounted money into accounted money and hence can utilize the same. It is submitted that the real owners and beneficiaries of the said amount are those parties who have been issued the cheques and hence the assessee should not be subjected to tax on the amounts or income which does not belong to him. It is submitted that the tax should be levied on the persons who have actually earned the said amounts and to whom the said cash belong. The details of the names and addresses of the parties have already been furnished to your goodself. Based on the said details, we humbly request: your goodself that the aforesaid submissions made by the assessee may kindly be confirmed by Issuing summons to these parties and calling upon them to explain the correct facts. We submit that these facts can be only examined by summoning these parries and ascertaining the correct truth from them. Your goodself is vested with vide powers under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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