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2024 (4) TMI 354 - AT - Income TaxPrincipal of res-judicata application to the income tax proceedings - CIT(A) directing the AO to charge commission @ 0.5% of the total deposits on the basis of next year assessment - addition as undisclosed income of the assessee in the assessment framed u/s 143(3)/147 - HELD THAT - We observe from the appellate order that the CIT(A) has noted in the appellate order for AY 2011-12 under similar facts commission @0.25% of the total in the books and assessee was added to the income of the assessee on the ground that the assessee was an entry provider and allowed his bank accounts to be used by other persons in lieu of commission at 0.25% of the deposits. Having observed so the CIT(A) applied @.5% of the total deposits on the same reasoning in the current year as well which we do not find in any way to be wrong and in consistence with the facts of the case. Accordingly we are inclined to uphold the order of Ld. CIT(A) by dismissing the appeal of the revenue.
Issues Involved:
The appeal by revenue against Ld. CIT(A) order for AY 2010-11. Issue 1: Service of Notice The notice of hearing upon the legal heir of the assessee was attempted but failed. The notice was eventually served by affixture. The Ld. CIT-DR requested the case to be proceeded ex-parte due to the assessee's lack of interest. Details: The notice was sent to the legal heir of the assessee but was returned as the legal heir failed to accept it. After several attempts, the notice was served by affixture. The appeal was disposed of with the assistance of Ld. CIT-DR. Issue 2: Charge of Commission The revenue raised the issue against Ld. CIT(A) order directing the AO to charge commission at 0.5% of total deposits, ignoring the principle of res-judicata in income tax proceedings. Details: The AO added undisclosed income of Rs. 1,33,22,17,440 as commission earned by the assessee. In the AY 2011-12, the appellant's income was assessed at 0.5% of total deposits, treating it as commission earned. The Ld. CIT(A) partly allowed the appeal, directing the AO to compute income at 0.5% of total deposits. Conclusion: The ITAT Kolkata upheld the Ld. CIT(A) order, dismissing the revenue's appeal. The commission was charged at 0.5% of total deposits based on similar facts from the AY 2011-12. The appeal by the revenue was dismissed, and the order was pronounced on 5th April 2024.
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