2011 (8) TMI 1197 - AT - Income Tax

Summary

Issues involved:
The judgment involves appeals filed by the department against orders of the C.I.T.(A), Central-I, Kolkata for assessment years 2005-06, 2006-07, and 2007-08. The appeals concern additions made on protective basis, deletion of commission income, and deletion of cash deposits without explanation.

Addition made on protective basis:
The Revenue raised grounds related to the deletion of additions made on a protective basis. The Tribunal referred to a similar case where the Revenue's appeals were dismissed. The AO had added amounts based on statements made by the director of the assessee company, but the Tribunal found no justification for the additions. The Tribunal upheld the CIT(A)'s order and dismissed the Revenue's appeal on this issue.

Deletion of commission income:
Regarding the deletion of commission income, the Tribunal found that there was no substantial material to support the AO's contention that cash was received from various entities against which cheques were issued. As a result, the Tribunal dismissed the Revenue's appeal on this issue as well.

Deletion of cash deposits:
The AO had made an addition in relation to cash deposits in the bank accounts of the assessee. However, the Tribunal found that there was no merit in this addition as the books of accounts were produced and showed sufficient funds for the deposits. Therefore, the Tribunal confirmed the CIT(A)'s decision to delete the addition related to cash deposits.

Conclusion:
The Tribunal dismissed all the appeals of the Revenue after finding no infirmity in the orders of the CIT(A) who had followed the decision of the Tribunal in a similar case. The appeals were disposed of by a consolidated order for convenience, and the Revenue's appeals were ultimately dismissed.