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TMI Blog2021 (8) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... n 26/03/2013. The grounds of appeal read as under: - (i) Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in restricting the quantum of commission to be charged towards accommodation entries provided by the assessee at the rate of 0.6% based on the average of the past four years profits overruling Assessing Officer's estimation @ 1% thereby granting a relief of Rs. 27,47,974/- without appreciating that the profits shown by the assessee in such years were not held as the commission income received from bogus accommodation entries by the assessee?" (ii) Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in holding that no reason or basis was given by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f brokerage and commission income ignoring the ratio laid down by the decision of the Hyderabad ITAT on this issue in the case of Totem Infrastructure Ltd. Vs ACIT-2(3) [ITA No.650/Hyd/2013] [order dated 07.03.2014]? (vi) Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deleting the addition of brokerage and commission income allowing relief by relying on the objects of the Memorandum of Association without factually verifying the inclusion of such receipts by the assessee in its accounts ignoring the ratio laid down by the Hon'ble Apex Court's in the case of Commissioner of Income-tax Vs Calcutta National Bank Ltd. [1959] 37 ITR 171 (SC) that only the objects and clauses set out in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.03.2014] involving similar facts wherein he has not only upheld the charging of net commission at the rate of 1% towards providing accommodation entries but also confirmed the addition of interest & contract income made separately by the Assessing Officer under the head income from other sources. (x) The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the AO be restored. As evident, the revenue is aggrieved by certain relief provided by learned CIT(A) in the impugned order while estimating the commission income. 2. We have carefully heard the rival submissions and perused relevant material on record including documents placed in the paper book. Our adjudication to the subject matter of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rately added to the income of the assessee under the head Income from other sources. Finally, the income was determined at Rs. 482.36 Lacs. Appellate Proceedings 4.1 During appellate proceedings, the assessee submitted further details against which a remand report was sought from Ld.AO. The assessee furnished certain other documents during remand proceedings which were in the shape of ledger account of 4 suppliers, copies of bills and payment of proofs etc. The assessee also tabulated turnover and profitability data of past 4 years and submitted that there was drastic increase in turnover which reduced the margins of the assessee. The Ld. AO while supporting the additions, make out a case of enhancement since discrepancy of Rs. 3216.78 La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te addition of the same under the head Income from other sources was not sustainable. Similar was the adjudication for contract income of Rs. 266.08 Lacs wherein Ld.CIT(A) held that the same was to be considered as part of total turnover only and separate addition thereof would not be sustainable. 4.4 Aggrieved as aforesaid, the revenue is in further appeal before us. It has been submitted that the assessee has accepted the verdict of Ld. CIT(A) and has not preferred any further appeal. Our findings & Adjudication 5. Upon due consideration of orders of lower authorities, so far as the rate of commission is concerned, we find that the estimation as made by Ld. CIT(A) was in accordance with average profits shown in earlier 4 years. Even if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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