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2019 (9) TMI 613 - HC - Income TaxCommission on the accommodation entries provided by assessee - ITAT reduced the percentage from 2.25 % to 0.5% in second round of litigation - HELD THAT - The impugned order of the ITAT shows that this is a second round of litigation. ITAT has explained how the fixing of the percentage at 2.25% by the AO was based on noting of some loose sheets which were seized during a search operation. The reliability of these notings are themselves in dispute. ITAT has on a consideration of the entire facts and circumstances and considering that different rates are charged in different transactions formed the view that 0.5% should be taken as a reasonable rate of profit/commissioner in such activities. This Court fails to appreciate how the said order of the ITAT gives rise to any substantial question of law. Moreover, this is the second round of litigation and it has to end at some point. The Court sees no reason to interfere with the impugned order of the ITAT.
Issues:
- Appeal against ITAT order reducing commission percentage on accommodation entries provided by the Assessee. Analysis: 1. The appeals were filed by the Revenue against the ITAT's order reducing the commission percentage on accommodation entries provided by the Assessee. The main issue raised was whether the ITAT had arbitrarily reduced the percentage from 2.25% to 0.5%. 2. The ITAT's order was considered a second round of litigation. It was noted that the Assessing Officer had fixed the percentage at 2.25% based on loose sheets seized during a search operation, the reliability of which was in dispute. The ITAT, after considering different rates charged in various transactions, concluded that 0.5% should be considered a reasonable rate of profit/commission in such activities. 3. The High Court, upon reviewing the facts and circumstances, found no substantial question of law arising from the ITAT's order. It was emphasized that this being the second round of litigation, there was no justification for interference with the ITAT's decision. The Court highlighted the need for finality in the legal process and dismissed the appeals accordingly.
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