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TMI Blog2012 (9) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue arose wherein CIT(A) has deleted the addition made in respect of TDS amount and addition made on account of commission has been restricted to 2.24% of the gross receipt shown in the profit and loss account from M/s. PACL India Ltd. and others. As the revenue has not questioned the first appellate order for the assessment year 2007-08 on an identical issue under similar facts before the Tribunal, thus the CIT(A) has rightly deleted the addition made on account of TDS treating the amount claimed from M/s. PACL India Ltd. and PGF Ltd. as real income of assessee and in restricting the addition made on account of 4% commission on debit and credit entries regarding providing accommodation entries to the said companies to 2.24% of the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The AO accordingly added the amount. The AO further added an amount being commission @ 4% in respect of the credit and debit in the bank account which were allegedly accommodation entries. The Ld. CIT(A) noted that in the earlier assessment year in the case of assessee and their group sufficient relief in this regard has been given. He noted further that in the assessment year 2007-08 on identical issues in the case of assessee s as well as the group companies, the additions made by treating TDS amount as income, were deleted by the first appellate authority and further relief has been given by him by restricting the addition to 2.4 of the gross receipt shown in the profit and loss account from PACL India Ltd towards commission. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the following decisions : 1. Maddi Sudarsanam Oil Mills Company. v. Commissioner Of Income Tax, Hyderabad And Andhra reported in 37 ITR 369 (AP) 2. Indwell Constructions vs. CIT reported in 232 ITR 776 (AP) 5. We have considered the above submissions in view of the orders of the authorities below and decisions relied upon. We find that the AO made addition of Rs. 19,16,357/- in case of M/s. Rupa Promoters Pvt. Ltd. applying 4% commission on debit and credit entries of Rs. 4,79,08,938/-. The AO was of the view that the assessee did not conduct land development work for M/s. PACL India Ltd. and PGF Ltd. Hence he made the above addition. The AO was of the opinion that the TDS amount claimed from M/s. PACL India Ltd. and PGF Ltd. was m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Promoters Pvt. Ltd. as well as the group companies viz. M/s. Rishikesh Properties Pvt. Ltd. and M/s. Rishikesh Buildcon Pvt. Ltd etc. in the earlier year, the additions made were deleted by the Ld. CIT(A) and the Tribunal has dismissed the appeals preferred by the revenue for that assessment year 2006-07. The Ld. CIT(A) has noted that in the case of M/s. Rishikesh Properties PVt. Ltd. where the first Appellate Authority had reduced the addition to 0.5% of gross receipt the Tribunal has remanded the matter to the AO for considering the GP of companies carrying similar work. He has noted that in the case of M/s. Jatadhari Builders Pvt. Ltd. for assessment year 2007-08, the Ld. CIT(A) has also restricted the addition to 0.5% and in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order for the assessment year 2007-08 on an identical issue under similar facts before the Tribunal. Under these circumstances we are of the view that the Ld. CIT(A) has rightly deleted the addition made on account of TDS treating the amount claimed from M/s. PACL India Ltd. and PGF Ltd. as real income of assessee and in restricting the addition made on account of 4% commission on debit and credit entries regarding providing accommodation entries to the said companies to 2.24% of the gross receipt shown in the profit and loss account from the above companies keeping in view the precedent of last assessment year 2007-08 under similar facts which remained unquestioned by the revenue. The first appellate order is thus upheld. Grounds are accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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