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TMI Blog2017 (2) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... the net commission income from the gross value of building material supply bills @ 0.75%. Accordingly we set aside the order of the ld. CIT(A) on this issue and restore the same to the file of the AO to follow the direction as given at para 7.2 here-in-above and pass a fresh assessment order as per the provisions of the Act after giving reasonable opportunity of being heard to the assessee. Thus ground number 1,2, 4(i)(ii) ,5 & 8 are allowed for statistical purpose. Allowance of expenses from the income earned by way of commission on providing accommodation entries - Held that:- Keeping the principle laid down in the above decision of the Hon’ble High Court instead of the Tribunal order in M/s Saroj Anil Steel Pvt. Ltd. (2012 (10) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s activity. The 4th ground is that ld. CIT(A)erred in rejecting the rate of commission earned by the appellant in respect of transaction of accommodation entries in the form of sales bills issued in her two proprietary concerns to various parties, which she had admitted in the affidavit filed by her in the course of appellate proceedings. Without prejudice, it is submitted that (i) ld. CIT(A) failed to appreciate that appellant in her affidavit and various submissions made during the course of appellate proceedings had stated that she has earned commission @ 0.5% in respect of gross value of transport bills, (ii) on the facts and circumstances of the case and in law, the ld. CIT(A)failed to appreciate that the appellant in her affidavit has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applying the ratio laid down by this honourable Tribunal in the case of M/s. Saroj Anil Steel Pvt. Ltd. wherein the manner in which the income has to be determined has been decided in a case akin to the case of the appellant. The 8th ground is that the direction of the ld. CIT(A) contained in para 3.2:2 of appeal order of the manner in which the Assessing Officer should assess the net commission income is bad in law because it leads to a situation on enhancement of income already assessed and therefore is a violation of principal of natural justice, because no notice has been given by CIT(A) of his intention or proposition to enhance the assessed income and thus is a decision made on an ex-parte basis for which also no notice declaring suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... @ 2% of the gross value of material supply bills issued. 5. Before us, the ld. Counsel of the assessee submits that the assessee is the proprietress of two concerns namely M/s D.C. Corporation and M/s. D.K. Enterprises shown to be in the business of building material supply and providing of transport services. It is further stated by him that the assessee has earned income @ 0.75% of the gross value of accommodation bills issued by her towards supply of building materials and 0.50% of the gross value in respect of bills issued for transportation. The ld. Counsel also submits that as per the order of the ITAT SMC Benches Mumbai in the case of M/s Saroj Anil Steel Pvt. Ltd. vs. ITO (ITA No. 5854/Mum/2012) for the A.Y. 1999-2000, the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice u/s 142(2) issued by the AO on 18/01/2013 has filed a written submission on 28/01/2013 wherein she has admitted the following: In so far as attempt being made to verify the genuineness of sale, I once again affirm that my affidavit in this regard should be relied upon because none of the parties to whom bills have been issued will ever admit that the transactions with them are not genuine because in doing so they would be hit in their own tax matter in so far as their income are concerned which apparently are manipulations. 7.2 Keeping in mind the above order of the ITAT, the AO would verify whether the cheques received from the parties were deposited in the bank accounts and cash was withdrawn immediately thereafter and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reject those books and estimate the income to the best of his judgment. When such an estimate is made it is in substitution of the income that is to be computed under section 29. In other words, all the deductions which are referred to under section 29 are deemed to have been taken into account while making such an estimate. This will also mean that the embargo placed in section 40 is also taken into account. 7.4.1 Keeping the principle laid down in the above decision of the Hon ble High Court instead of the Tribunal order in M/s Saroj Anil Steel Pvt. Ltd(supra), the claim of the assessee to allow expenses from the income earned by way of commission on providing accommodation entries of transportation is rejected. Thus ground number 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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