2012 (10) TMI 744 - AT - Income Tax

Addition on account of commission received - differences between the gross total income as per TDS Certificate and gross income as per Profit & Loss A/c - business of providing shipping agency services Held that - Excess commission income on which TDS was deducted but did not crystallize during the relevant assessment year, was reversed by the assessee company during the year end - Assessing Officer has not found any discrepancy and therefore the reversion of detention commission allowed - CIT(A) has deleted the addition after examining the matter in detail - Revenue s appeal dismissed.

Summary

Issues:
1. Discrepancy in commission income reported by the assessee.
2. Addition of income by the Assessing Officer.
3. Appeal against the order of the Ld. CIT(A).

Analysis:
1. The case involved a dispute regarding the commission income reported by the assessee. The Assessing Officer observed a difference between the income reported in the Profit & Loss Account and the TDS certificate. The AO issued a show cause notice under sections 154/155 of the Income Tax Act, leading to an addition of Rs. 92,61,798 to the total income of the assessee. The assessee contended that the difference was due to two types of commission income and provided explanations supported by evidence. The Ld. CIT(A) considered the submissions and remand report, ultimately deleting the addition made by the AO.

2. The Revenue appealed against the order of the Ld. CIT(A) on the grounds that the addition made by the AO should not have been deleted. The Ld. DR supported the AO's order, while the assessee's counsel reiterated the explanations provided earlier. The ITAT carefully examined the submissions and material on record. The ITAT noted that the Ld. CIT(A) had considered the remand report and additional evidence, concluding that the AO's addition was not justified. The ITAT upheld the Ld. CIT(A)'s decision, emphasizing that the deletion of the addition after detailed examination did not warrant interference.

3. The ITAT dismissed the Revenue's appeal, affirming the Ld. CIT(A)'s order. The ITAT found no reason to overturn the decision, as the Ld. CIT(A) had thoroughly analyzed the facts and evidence before deleting the addition. The ITAT concluded that the Ld. CIT(A)'s order was well-founded, and therefore, upheld the decision. The appeal by the Revenue was rejected, and the order was pronounced in open court on 18.4.2012.