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TMI Blog2024 (10) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion income earned by it on the admitted business of providing accommodation entries was to be estimated by applying at the rate of 0.5% to the total bank deposits of the assessee. Assessee has demonstrated that in the case of other assessee s undertaking identical transactions, CIT(A) themselves had held commission income to be earned @ 0.5%. Assessee has also pointed out that the 2% commission rate admitted by the assessee in the preceding year was in relation to specific transaction of accommodation entry entered into with one M/s.Ardor Overseas Pvt.Ltd. DR was unable to controvert the above contentions of the Ld.Counsel for the assessee before us. In view of the same, we do not find any justification in the estimation of commission inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs. 4 He has erred in observing that the appellant in the statements of facts of appeal memo has not given any justification for estimating the commission @ 0.5% inasmuch as that in the statement of facts, it has been stated by the assessee to accept estimation of commission @ 0.5% on the basis of assessment made in other companies on similar facts. 5 On the facts of the assessee, no interest u/s 234A, 234B and 234C ought to have been levied. 6 On the facts of the appellant, returned income ought to have been accepted. 7 The appellant craves leave to add to alter and/or to modify any ground of appeal. 3. At the outset, Ld. Counsel for the assessee stated that all the grounds raised above relate to a solitary issue of estimation of commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate rate of commission earned in the business of providing accommodation entry. The AO, however, rejected the contention of the assessee noting that during the assessment proceedings for AY 2014-15, the Auditor of the assessee had explained the assessee to be charged at 2% commission on transactions. Accordingly, the AO assessed the commission income of the assessee by applying of 2% to the total deposits in the bank account of the assessee. Thus, estimating the business income at Rs. 48,70,740/-. 5. Before the Ld.CIT(A), the Ld.Counsel for the assessee pointed out that none-appeared on behalf of the assessee and he, therefore, confirmed the order of the Ld.CIT(A). Our attention was drawn to the relevant finding of the Ld.CIT(A) con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was pointed out to the AO that in the case of other assesses admittedly providing accommodation entries, the Ld.CIT(A) s themselves had held estimation of commission income @ 0.5% to be correct. He drew our attention to the submissions of the assessee before the AO reproduced at page 2 of the assessment order as under: Kindly refer to your show cause notice dated 15.12.2017 in connection with the profit and loss account which is shown total receipts of Rs. 33.37,173/- and claimed total loss of Rs. 68,79,914/-. It was established and affirmed that the company is an entry provider for the beneficiaries charging 2% as commission as per Para 2(i). In para 2(ii), as per ITS one bank account of Nikshal Properties Pvt Ltd has been traced in Rajk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh its bank accounts. 7. On the other hand, the Ld.DR stated that the assessee itself in assessment proceedings for the preceding year had admitted to having been earned commission income @ 2%. 8. To this, the Ld. Counsel for the assessee countered by stating that the 2% commission income was admitted by the assessee to have been earned in a specific transaction of sale of land with M/s.Ardor Overseas Pvt. Ltd. and not with respect to the other accommodation entry transactions. 9. We have heard the contentions of both the parties. We find merit in the contention of the Ld. Counsel for the assessee that the commission income earned by it on the admitted business of providing accommodation entries was to be estimated by applying at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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