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2004 (3) TMI 20 - HC - Income TaxCredits rate of commission - Tribunal allowed 10 per cent, commission - We find no ground to make interference into allowing the commission at 10 per cent, as it is also a question of fact, not a substantial question of law. When in other similar cases the Tribunal has allowed 10 per cent, commission, we find that the Tribunal is justified in treating the assessee on similar footing - finding of genuineness of the creditors is based on sufficient evidence, which has been accepted by the Assessing Officer and by the Income-tax Appellate Tribunal. The question raised is of sufficiency of evidence. We find no substantial question of law arises in the appeal.
Issues:
Assessment year 1997-98: Revisional authority's order challenged before Income-tax Appellate Tribunal regarding credits and commission. Assessment year 1998-99: Revisional authority's order challenged before Income-tax Appellate Tribunal regarding credits and commission. Analysis: For the assessment year 1997-98, the assessee derived income from bidis manufacturing and sales. The Commissioner of Income-tax found discrepancies in credits accepted by the Assessment Officer and ordered further inquiry. The Income-tax Appellate Tribunal set aside the Commissioner's order, leading to an appeal. The Tribunal justified the Assessment Officer's thorough inquiry into the creditors' identity and source, allowing 10% commission. The Tribunal referred to various legal precedents supporting the assessee's expenditure on commercial exigency grounds. The Tribunal concluded that the Commissioner's order under section 263 lacked merit and upheld the Assessment Officer's decision. Regarding the assessment year 1998-99, similar issues arose with 10 parties identified for loan verification. The Tribunal found the credits genuine based on confirmation letters and PAN numbers provided by the assessee. The revisional authority questioned the lack of verification of immediate deposit sources, but both the Assessment Officer and Tribunal deemed the credits genuine. Legal precedents supporting the assessee's position on cash credits were cited, and the Tribunal rejected the revisional authority's claim of insufficient inquiry. The Tribunal upheld the 10% commission and genuineness of credits for both assessment years, dismissing the appeals. The Tribunal found no substantial legal question in the appeals, as the evidence presented was deemed sufficient by the Assessing Officer and Tribunal. The Tribunal emphasized consistency in treating the assessee similar to other cases where 10% commission was allowed. Ultimately, both appeals were deemed meritless and dismissed.
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