9911796707
TMI Blog2025 (5) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... for unexplained entries in bank account ignoring the fact that the Assessee has failed to produce any concrete and any additional evidence's in support of its contention. 2. The Ld. CIT(A) has erred in deleting the addition of Rs. 2,34,963/- made on account of unaccounted commission @0.25% ignoring the fact that this commission charged @0.25% by the conduit concern i.e. the Assessee company was used for running the business of facilitating accommodation entries. 3. That the order of the CIT (A) is perverse, erroneous and is not tenable on facts and in law. 4. That the grounds of appeal are without prejudice to each other. 5. That the appellant craves leave to add, amend, alter or forgo any ground(s) of appeal either before or at the time of hearing of the appeal." 3. Brief facts of the case are that for Assessment Year 2012-13 are considered which are as follows:-The Assessee filed return of income declaring total income of Rs. 78,990/-. Subsequently, action u/s 132 of the Act was carried out at the residential premises of Kaushal Kumar employee of Sh.Anand Kumar Jain and Naresh Kumar Jain (Jain brothers) on 17/12/2015, wherein various documents/books of accounts were foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 are identical and similar, they were heard together and being adjudicated by this common order. As agreed by the learned representatives of both the sides we are taking up ITA No. 4958/Del/2019 for AY 2012- 13 as lead case, wherein the revenue has raised following two effective grounds of appeal:- 1. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in law and on facts in deleting the protective addition of Rs. 54,64,44,954/- made by the AO on account of unexplained cash credits, without considering the fact that the assessee has failed to discharged the onus to satisfy the conditions laid on u/s. 68 of the I.T Act 1961 with regard to the nature and source of credit entries in respect of share capital/premium/unsecured loans and other credits in bank. 2. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in law and on facts in deleting the substantive addition of Rs. 13,66,112/- made by the AO without considering the fact that the assessee that assessee being a conduit concern, would have earned commission income for the transactions. 3. The ld. CIT(DR) supporting the assessment orders submitted that the Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is hereby upheld, accordingly, the Ground No. 1 of the Revenue is dismissed. 8. The Ground No. 2 is regarding deletion of addition made on account of unaccounted commission. The Ld. Department's Representative submitted that the similar issue of commission has been decided by the Coordinate bench of the Tribunal in the case of Holeon Traders Pvt. Ltd. vide order dated 21/07/2023 in ITA No. 4958 to 4962/Del/2019, held that whole claim of expenses made in the P &L accounts towards earning of commission income shall be allowed and the net rate of commission earned by the Assessee i.e, @ 0.47% of total turnover of accommodation entries after elimination of circular transaction is required to be add as income of the Assessee from commission. Therefore, submitted that the Ground No. 2 of the Revenue may be allowed. 9. Per contra, the Ld. Assessee's Representative submitted that the order of the Tribunal dated 21/07/2023 in ITA No. 4958 to 4962/Del/2019 referred by the Ld. Department's Representative has been corrected by way of Corrigendum, wherein the Tribunal has dismissed the similar Ground No. 2 of the Revenue. The Ld. Assessee's Representative has also produced fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been crept therein therefore, the earlier paras no. 7 & 8 of said order are being replaced with following modified paras:- 7. Regarding ground no. 2 of revenue we note that identical grievance/ground of revenue under identical facts and circumstance has been decided by the Tribunal in favour of the assessee and against the revenue reversing the first appellate order, Relevant paras 21 & 22 of Tribunal order (supra) are as follows:- 21. Therefore, as per the explanation and submissions of the assessee, whole of the expenses incurred in earning commission income shall be allowed and accordingly the net rate of commission earned by the assessee i.e. 0.47% is the best which can be applied on the turnover of the accommodation entries after elimination of circular transactions. Thus the maximum addition which can be made in the hands of the assessee on account of commission earned on turnover of the accommodation entries worked out as under; Assessment Year Assessment Year turnover (after elimination of circular transaction) Commission rate Commission income A.Y 2010-11 115,610,968 0.47% 5,43,372/- A.Y 2011-12 160,105,451 0.47% 7,52,496/- A.Y 2012-13 114,700,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
