TMI Blog2023 (6) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... entries he only charges commission whereas the cash belongs to the person who is taking the accommodation entry, therefore, there is no error or infirmity in the findings of CIT(A) in sustaining the addition on account of commission earned on providing accommodation entries. - ITA No. 6869/DEL/2015 And CO No. 177/DEL/2018 - - - Dated:- 9-6-2023 - Shri N.K. Billaiya, Accountant Member, And Shri Anubhav Sharma, Judicial Member For the Assessee : Dr. Rakesh Gupta, Adv. And Shri Shrey Jain, Adv. For the Revenue : Shri Rajendra Jha, Sr. DR ORDER PER N. K. BILLAIYA, ACCOUNTANT MEMBER : This appeal by Revenue and Cross Objection by assessee are directed towards the order of the Commissioner of Income Tax (Appeals)-27, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espite several opportunities given to the assessee for furnishing the details of credit entries in bank account with supporting evidences, no confirmation regarding sold investments were produced. The AO further observed that the assessee has failed to establish the genuineness and creditworthiness of the bank credit entries. The AO further observed that looking to the past history of the assessee it is established that the assessee is engaged in the business of providing of accommodation entries. The AO accordingly added the unexplained cash deposits and made addition of Rs. 2,32,36,150/-. 4. The assessee challenged the addition before the CIT(A) and vehemently contended that the deposit of Rs. 1,79,50,000/- was out of the liquidation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commodation entry, therefore, there is no error or infirmity in the findings of CIT(A) in sustaining the addition on account of commission earned on providing accommodation entries. 8. The Hon ble High Court of Bombay in the case of Alag Securities (P.) Ltd. reported in 425 ITR 58 (Bombay) was seized with the following substantial question of law : 3. The appeal has been preferred by the Revenue projecting the following questions as substantial questions of law :- 1. Whether on the facts and in the circumstances of the case and in law. Tribunal erred in restricting the addition of Rs. 4,78,94,000.00 made by the Assessing Officer on account of unexplained cash credits under section 68 of the Act to commission income calculated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. During the assessment proceedings, the assessee submitted that it was involved in the business of facilitating and providing accommodation entries to the beneficiaries, details of which were explained during the search action. It was also explained that for such services rendered, assessee used to charge commission and the rate of commission was taken at 0.15% It was contended that assessee had deposited the cash received from the customers/beneficiaries and issued corresponding cheques to them for which it earned commission. This is the admitted case. Therefore, Section 68 of the Act would not be attracted in such a case because the cash credits did not belong to or formed part of the income of the assessee. ******* 20. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al accepted the percentage of commission at 0.15% disclosed by the assessee itself. This finding is a plausible one and it cannot be said that the rate of commission was arrived at in an arbitrary manner. The same does not suffer from any error or infirmity to warrant interference, that too, under section 260A of the Act. 22. In so far the decision of the Supreme Court in NRA Iron and Steel (P) Ltd. (supra) is concerned, the same is not attracted in the present case in as much as facts of the present case are clearly distinguishable. Unlike the present case, the assessee in NRA Iron and Steel (P) Ltd. (supra) claimed the cash credits as its income. However, it was found that the creditors had meagre or nil income which did not justify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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