TMI Blog2021 (1) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... in, we hold that only commission income @0.15% could be added in the hands of the assessee on the total accommodation entries provided by it on the total credits available in the bank account being the accommodation entries for the respective assessment years. - ITA No.7105/Mum/2017, ITA No.7106/Mum/2017, ITA No.7107/Mum/2017 And ITA No.7108/Mum/2017 - - - Dated:- 13-1-2021 - Shri M. Balaganesh, AM And Shri Pavan Kumar Gadale, JM For the Assessee : Shri Ajay Singh For the Revenue : Shri Gurbinder Singh ORDER PER M. BALAGANESH (A.M): ITA No.7105/Mum/2017 (A.Y.2009-10) These appeals in ITA No.7105/Mum/2017, 7106/Mum/2017, 7107/Mum/2017 7108/Mum/2017 for A.Y.2009-10, 2006-07, 2007-08 2008-09 arise out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable income and not entire amount of transaction. In brief, the search was conducted in the case of M/s. JIK Industries Ltd. The statement of Shri DilipJayantilal Shah was recorded on 04.02.2011. It was stated that the applicant used to issue accommodation entries on commission basis @ 0.02% to 0.10%. On the basis of the said information, the noticed u/s 153C of the Act was issued. The assessment u/s 153C was completed treating the 4% as income. Subsequently, the PCIT-4 passed the order u/s 263 of the Act and thereafter the assessment u/s 144/142(1) r.w.s. 153C of the Act was competed by assessing the 100% addition i.e. in sum of ₹ 2,34,52,668/-. The CIT(A) upheld the disallowance. The applicant/appellant had produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed accordingly. 3. The only identical issue to be decided in these appeals is as to whether only commission income could be assessed in the hands of the assessee being an accommodation entry provider, in the facts and circumstances of the instant case. 3.1. We have heard the rival submissions and perused the materials available on record. We find that a search and seizure action was conducted in the case of M/s. JIK Industries Ltd., on 04/02/2011. The assessee was issued notice u/s 153C of the Act as an offshoot of the said search action. A statement was recorded from Shri Dilip Jayantilal Shah during the course of search on 04/02/2011 wherein it was found that assessee company had transactions with JIK Industries Ltd. Shri Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 17/05/2017 for A.Yrs. 2009-10 and 2011-12 which was also covered in the same search and seizure action of JIK Industries Ltd., and only commission income was added in its hands . Reliance was also placed on various other Tribunal decisions by the assessee in the case of Goldstar Finvest Pvt. Ltd., and among others in support of the same contentions. Since, these cases were not considered by this Tribunal while disposing off the original appeals, the same were rightly recalled by this Tribunal in MA proceedings and hence, the present proceedings before us. 3.3. It is not in dispute that assessee is only an accommodation entry provider. In this scenario, it would be just and fair that only the commission income could be brought to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l High Court referred to supra in the same case. f. Decision of the Hon ble Jurisidictional High Court in the case of PCIT vs. Alag Securities Pvt. Ltd., in Income Tax Appeal No.1512 of 2017 dated 12/06/2020 upholding the same commission percentage of 0.15% in the case of assessee engaged in the business of providing accommodation entries. 3.4. We find that assessee had raised an additional ground in the present proceedings before us as a matter of abundant caution with a prayer that only commission income added in its hands and not the entire credits in the bank account. We find that this additional ground has been raised in the present proceedings before us only as a matter of abundant caution even though the same were already raise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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