9911796707
TMI Blog2020 (12) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... ts for all the assessment years. DR agreed that this issue already is decided in favour of the assessee. Increase in investment - HELD THAT:- As assessee company vide its written submissions before the ld. CIT(A) had submitted that amount of increase in investment for the aforesaid two years had been wrongly computed by the ld. AO and there is no increase in investment at all. On the contrary, there is only decrease in investments. The assessee filed some chart before us to drive home the point that there is effectively only decrease in investments in both the years. In the interest of justice and fairplay, we deem it fit and appropriate that the aforesaid chart on investments filed by the assessee requires to be revisited by the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the bar and accordingly, all other grounds are dismissed as not pressed for the respective assessment years. 3. The ground No. 5 6 raised by the assessee for A.Y.2008-09 in ITA No.3646/Mum/2019 is now taken up for adjudication. This is a common ground and the decision rendered for A.Y. 2008-09 on this issue would apply with equal force for other assessment years also except with variance in figures. The issue in dispute in these grounds are that whether the assessee is entitled for benefit of telescoping the commission income with the income declared in the return. 4. We have heard rival submissions and perused the materials available on record. We find that a search u/s.132 of the Act was carried out at the various premises of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 008-09 and completed the assessment, by applying 1% on new investment made during the year and total sales shown during the year. Similar additions were made for other assessment years also by the ld. AO. 4.2. We find that assessee had pleaded before the ld. CIT(A) by conceding and accepting that it earned commission income on bogus entries but further pleaded that the said commission income should have been restricted only to transactions with outside companies and not to transactions with group companies controlled by Shri Shirish C Shah. This was on the logic that no one can earn profit from one self. The ld. CIT(A) duly appreciated this contention of the assessee and gave a categorical finding that the internal movements of funds wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is in appeal before us. We find that the issue in dispute has already been the subject matter of adjudication in assessee s own case by the order of this Tribunal for A.Y.2011-12 in ITA No.3205/Mum/2019 dated 23/10/2019 wherein this Tribunal had allowed the benefit of telescoping and granted relief to the assessee. We find that the assessee claimed telescoping of commission income against the income declared in its books of accounts. The income declared in books of account comprised of Gross Profit on sales and interest income on loans and advances (assessed as accommodation entries by Ld. AO). Details of said income is as under:- AY Income as per books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has not established that the income in the books of account is exclusively and wholly out of the commission income. The income declared by the assessee company comprises of Gross profit on sales on which commission is assessed by Ld. AO. Further, interest income on loans and advances given is appearing as other income. Both turnover and loans and advances given by the assessee company have been assessed as bogus. Thus, no real income can be expected from the same. The assessee in lieu of accepting commission income in cash has taken income in its books in the form of Gross Profit and Interest. 2. The assessee has been declaring losses. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or A.Yrs 2008-09 to 2013-14 and ground Nos. 4 5 for A.Y. 2014-15 are allowed. 5. With regard to ground No.7 raised by the assessee for A.Y.2013-14 and ground No.6 raised by the assessee for A.Y.2014-15 is concerned, we find that the ld. AO had taken the amount of increase in investments as under and computed the commission income of the assessee as under:- A.Y. Amount taken by AO Commission Amount 2013-14 93,72,19,784/- 93,72,198/- 2014-15 84,80,98,420/- 84,80,984/- 5.1. We find that the assessee company vide its written submissions before the ld. CIT(A) had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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