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TMI Blog2022 (9) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee is an entry provider only and was involved in accommodation entry business and has been rightly taxed at 0.5% for commission income on the deposits in the bank account which includes the sale consideration and directed to delete the above addition on account of business income. Thus the Grounds raised by the Revenue devoid of merits and the same is hereby rejected. Appeal filed by the Revenue is hereby dismissed. - ITA No. 1821/Ahd/2015 - - - Dated:- 28-9-2022 - Ms. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Appellant : Shri Samir Tekriwal, CIT/DR For the Respondent : Shri P.F.Jain, A.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER: - The presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income on 14.10.2010 declaring a loss of Rs. (-) 66,08,845/-. The assessee has shown income from Short Term Capital Gain on sale of land of Rs. 10,22,73,500/- and also claimed business loss of Rs. 10,98,37,024/-. Thus resulting in a net loss of Rs. 66,08,845/-. This claim of loss and Short Term Capital Gain are accepted by the Assessing Officer and the book result has not been rejected by the A.O. 3.1. As per the extract of audited Profit and Loss account under the head of income amount of sales shown is Rs. 13,79,10,600/- which includes the sale consideration received by the assessee as a confirming party from M/s. Atmiya Developers Pvt. Ltd. of Rs. 3,28,32,402/- During the assessment proceedings, the assessee submitted seven bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of Rs. 3,28,32,402/- received by the company as a confirming party does not belong to the assessee company and that amount was being paid to 15 parties, which includes five land owners and remaining others are said to be the real beneficiaries. However the Assessing Officer had not taken any steps calling for the statement of the third parties who were paid the part consideration by the assessee. Considering the above submissions, the Ld. CIT(A) deleted the addition on account of business income of Rs. 3,28,32,402/- as the same amount suffered to taxes as entry provider at 0.5% as commission income in the hands of the assessee as follows: 8.3 During the appellate proceeding my predecessor on the basis of the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has given finding that the appellant is only an entry provider. 8.6 In view of the facts discussed above, confession letter of the appellant and remand report, I am of the view that the appellant is an entry provider only and was involved in accommodation en-try business thus has to be taxed @ 0.5 % for commission income on the deposits made in the bank accounts and accordingly AO is directed to delete the addition on account of business income of Rs.3,28,32,402/- . Thus the grounds of appeal no. 2,3 4 are allowed. 5. Aggrieved against the appellate order, the Revenue in in appeal before us on the solitary issue that the consideration received by the assessee as a Confirming Party is in the nature of sale proceeds of land i.e. o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Assessing Officer by passing an assessment order u/s. 144 for the previous assessment year 2009-10. Similarly for the current assessment year 2010-11, the A.O. has charged 0.5% commission rate on the total withdrawals of Rs. 88,05,67,045/- in various bank accounts of the assessee and determined the commission income as Rs. 42,38,673/-. Thus the deletion made by the Ld. CIT(A) does not require any interference, assessee having offered the consideration received from M/s. Atmiya Developers Pvt. Ltd. is shown as sales in its book as revenue receipt. Therefore the Grounds raised by the Revenue is devoid of merits and liable to be dismissed. 7. Heard both the parties and perused the materials available on record including the Paper Book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the 5 land owners or the remaining 10 third parties it is being suffered taxed in the respective hands. Thus the assessing officer attempted to tax the entire consideration in the hands of the assessee, which is negativated by the ld. CIT(A) after considering the facts in detail. Therefore we do not find any infirmity in the findings of the ld. CIT(A) that the assessee is an entry provider only and was involved in accommodation entry business and has been rightly taxed at 0.5% for commission income on the deposits in the bank account which includes the sale consideration of Rs. 3,28,32,402/- and directed to delete the above addition on account of business income. Thus the Grounds raised by the Revenue devoid of merits and the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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