9911796707
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Issues involved: Appeal against orders of CIT(A) for assessment years 2006-07 and 2007-08; Addition made on protective basis; Deletion of commission income; Reliance on previous Tribunal decisions.
Summary: Issue 1: Addition made on protective basis The Revenue challenged the deletion of an addition of Rs. 11,22,60,500 made on a protective basis, based on a statement by the director of the assessee company. The Tribunal noted that the director retracted his statement, and there was no substantiated evidence to support the addition. The Tribunal upheld the CIT(A)'s decision to delete the addition, citing that all investments were recorded in the company's books, and there was no basis for the addition u/s 69 of the I.T. Act. The Tribunal dismissed the Revenue's appeal on this issue. Issue 2: Deletion of commission income The Revenue contested the deletion of 2% commission income of Rs. 22,45,210 for entry provided by the assessee company. The Tribunal found no substantial material to support the Revenue's contention of cash received against cheques issued, leading to no presumptive income in the form of commission. The Tribunal upheld the CIT(A)'s decision to delete the commission income estimated by the AO. The Revenue's appeal on this issue was also dismissed. Reliance on previous Tribunal decisions The Tribunal noted that the facts in the present case were identical to previous Tribunal decisions. The CIT(A) relied on these decisions to allow the appeal of the assessee. The Tribunal concurred with the CIT(A)'s decision, emphasizing the lack of corroborative evidence for the additions made by the AO. As the Revenue could not provide contrary facts or decisions, both appeals of the Revenue were dismissed. In conclusion, the Tribunal dismissed the appeals of the Revenue, upholding the decisions of the CIT(A) based on the lack of substantiated evidence and reliance on previous Tribunal decisions.
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