TMI Blog2018 (11) TMI 1910X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal), resultantly, the appeal of the Revenue is dismissed. - I.T.A. No. 4874/Mum/2017 - - - Dated:- 27-11-2018 - Shri B.R. Baskaran, AM And Shri Amarjit Singh, JM For the Revenue : Shri Manoj Kumar Singh (DR). For the Assessee : Shri Bhupendra Shah (AR). ORDER PER AMARJIT SINGH, JM : The revenue has filed the present appeal against the order dated 31.05.2017 passed by the Commissioner of Income Tax (Appeals)-40, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the A.Y. 2013-14. 2. The revenue has raised the following grounds: - 1. On the fact and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the A.O to estimate commission income at 0.1% of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admitted by the assessee that there was no movement of goods and the transactions were shown for doing circular trading within the group. Whereas the Ld. CIT(A) has not appreciated the fact that these were the sham transactions and the assessee given only accommodation entries to her employer and in return must have earned the commission. 4 The appellant craves leave to add, to amend, alter, substitute or modify any of the above ground or add a fresh ground as and when found necessary either before or at the time of hearing. 3. The brief facts of the case are that the assessee filed her return of income declaring total income to the tune of Rs.1,94,040/- on 31.07.2013. Thereafter, the assessee filed her revised return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immediate proceeding A.Y. 2012-13 in ITA. No.687/M/2017 dated 20.06.2018. It is necessary to advert the finding of the CIT(A) on record: - 6.2 I have carefully considered the assessment order and the submissions made by the appellant. The brief facts as emerged from the record are that the appellant is an employee Group working with one company Shirdi Industries Ltd. The appellant has shown the transactions of sale and purchase with the group companies/concerns. The amount of sale and the amount of purchase was exactly same. No profit/loss resulted from the sale/purchase. The appellant admitted that the transactions of sale purchase were within the group concerns only and the same were done at the instance of employer company to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transactions of sale/purchase were within the group concerns only and the same were done at the instance of employer company to increase the turnover of the group company. It was further admitted that there was no movement of goods and the transactions were shown for doing circular trading within the group. The Ld. AO has estimated the income on account of commission @ 2% of the sales turnover shown by the appellant. The appellant submitted a copy of assessment order in the case of Smt. Kalawati Negi PAN AFRPN4766Q where under the similar facts the AO. Estimated the commission income @ 0.1% of the sales turnover. It was stated that Smt. Kalawati Negi is also an employee of the same group shown the similar transactions to jack up the turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, to meet transactions to any third parties outside the group for earning any income. However, to meet the ends of justice. I restrict the estimation of income at 0.1% of the sales turnover which works out to Rs.5,25,871/- (0.1% of 52,58,70,822/-). Therefore, I direct the Lsd. AO to estimate commission income at 0.1% of the sales turnover, which works out to Rs.5,25,871/- (0.1% of 52,58,70,822/-). The appellant get the relief for the balance amount of Rs.99,91,545/- Ground nos 1 2 of appeal are partly allowed to this extent. 5. On appraisal of the above said finding, we noticed that the CIT(A) has decided the matter of controversy on the basis of the decision of the Hon ble ITAT in the assessee s own case for the A.Y. 2012-13 in I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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