9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 782 - HC - Income TaxCommission in accommodation entries - bogus bills produced - Held that - Amongst the reasons that weighed with the ITAT were that the Assessee purchased the goods on the fictitious bills. Further, the Assessee submitted the purchase letter as well as the sale bill. The Assessee was earning commission from bogus entries of issuing sales bills and then buying purchase bills. In the circumstances, the reduction of by the ITAT of the percentage of commission from 5.67% as determined by AO to 2% could not be said to be so improbable or perverse so as to warrant interference by this Court. - Decided against revenue
Issues:
1. Reduction of gross commission from 5.67% to 2% by the CIT (A). Analysis: 1. The High Court framed a question regarding the error in upholding the reduction of gross commission from 5.67% to 2% by the CIT (A) in the circumstances of the case. 2. The ITAT upheld the finding of the CIT (A) on appeal by the Revenue for the Assessment Years 2008-2009 to 2009-2010, stating that there was no infirmity in the CIT (A)'s order. 3. The AO conducted a detailed examination of accommodation entries and concluded that the Assessee's commission would be around 5.67%. However, the CIT (A) disagreed with the AO, stating that there is no fixed rate of commission in accommodation entries, and reduced the commission to 2%, a decision affirmed by the ITAT. 4. The High Court considered the submissions of the Senior Standing Counsel for the Revenue and reviewed the orders of the AO, CIT (A), and ITAT. 5. The ITAT provided detailed reasons for affirming the CIT (A)'s decision, including the Assessee's involvement in fictitious bills and earning commission from bogus entries. The High Court found the ITAT's reasoning valid and not perverse, as the reduction of commission from 5.67% to 2% was justified given the circumstances. 6. The High Court answered the question in favor of the Assessee and against the Revenue. 7. Consequently, the appeals were dismissed by the High Court based on the analysis and findings presented.
|
