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TMI Blog2024 (1) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... come between interest as per Form 26AS and interest income shown in the Return of Income - Whether it will tantamount to double addition? - HELD THAT:- We find merit in the propositions canvassed by assessee that addition on account of difference in interest income between interest as per Form 26AS and interest income shown in the Return of Income, treated as alleged undisclosed interest income from alleged accommodation loan entries of loans to various parties, which is not acceptable. Since the alleged accommodation loan was treated as bogus and assessing officer made estimation addition, hence addition on account of difference in interest income, is tantamount to double addition, hence the same is hereby deleted. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... timation of commission income. 6. Succinctly, the factual panorama of the case is that assessee before us is an Individual and filed his return of income on 17.03.2012, declaring total income at Rs. 2,02,100/-. The assessee was subjected to survey u/s 133A of the Act which was carried in the premises of the assessee on 24.03.2015. As per the information with the Investigation Wing, Ahmedabad, the assessee was the entry provider through his Proprietary Concerns, M/s Radhika Enterprise and M/s Rishit Corporation. During the course of survey, it was found that the assessee was providing bogus bills of purchase / sales and accommodation loan entries on commission basis. As the assessee was not maintaining regular books of accounts, the inventory of bank accounts was prepared as found in the premises which included the bank accounts of the assessee, his prop. Concerns, his family members, relatives and some non-descript persons. In his statement u/s 131 of the Act, the assessee, in reply to Q.No.3 and 5, confessed that he is engaged in providing all types of bogus / fabricated, sale bills, purchase bills, job work bills and the accommodation loan entries. The assessee also explained th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee was Rs. 15,93,688/- (Rs.12,57,814/- [+] Rs. 2,47,004/- [+] Rs. 88,870/-). 7. Aggrieved by the order of Assessing Officer, the assessee carried the matter in appeal before Ld.CIT(A), who has dismissed the appeal of assessee on account of technical grounds of re-opening of assessment u/s 147 of the Act. However, on merit, ld CIT(A) allowed the appeal of the assessee partly observing as follows: "7. Ground No2. Is relating to the addition of Rs. 12,57,814/- which is brought to tax by the AO being the commission on bogus entries provided @ 0.5% on total entries provided of Rs. 25,15,62,886/-. The appellant does not have grievance with reference to taxing of 0.5% as the gross commission earned on providing of accommodation entries. The grievance is about not allowing any expenses incurred by the appellant for providing these entries which involved some other 3rd parties and also towards certain other administrative expenses in maintaining the establishment. The AR also submitted that the appellant in his statement during the course of survey in reply to Q.No.7 has stated that out of the commission income earned, he had to pay Rs. 5,000/- to Rs. 6,000/- per mont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oans to various parties, which is not acceptable. Since the alleged accommodation loan was treated as bogus and assessing officer made estimation addition, hence addition of Rs. 2,47,004/- on account of difference in interest income, is tantamount to double addition, hence the same may be deleted. 11. On the other hand, ld DR from the Revenue, (in respect of ground No.2) submitted that deduction on account of estimated expenditure @ 20% of gross commission, should not be increased to 50%, as the estimated expenditure @ 20% of gross commission, is sufficient to cover the expenditure incurred by the assessee to earn commission. 12. In respect of ground No.3, ld DR stated that addition of Rs. 2,47,004/- on account of difference in interest income between interest as per Form 26AS and interest income shown in the Return of Income, should be sustained in the hands of the assessee, as it is not tantamount to double addition. 13. I have heard both the sides and gone through the relevant material on record. I note that, (vide table, para No.11.7 of the assessment order) assessee has not been given set off against the amount mentioned in column 'F' in the table, for the amount mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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