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TMI Blog2024 (10) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. - Smt. Beena Pillai, Judicial Member And Smt. Renu Jauhri, Accountant Member For the Assessee : Shri Mukesh Choksi For the Department : Shri Kailash C. Kanojiya, CIT-DR, Shri Paresh Deshpande, Sr. DR ORDER PER BEENA PILLAI, JM: Present appeals filed by the assessee arises out of order dated 26.06.2011 passed by the Ld. CIT(A)-III, Ahmedabad for Assessment Years 2003-04 and 2008-09 on following grounds of appeal: 1. The Ld. Commissioner of Income-Tax (Appeals) has erred in law and in facts in passing order u/s. 250 of the Act. 2. The Ld. Commissioner of Income Tax (Appeals) has erred in law and in facts in upholding the validity of the order passed u/s. 143(3)(3) r.w.s. 147 of the Act. The Ld. Commissioner of Income-Tax (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on gross receipts without reducing the transfer entries amount in bank account from which no income is earned. 2. The learned Assessing Officer has erred in law and in facts in not allowing business expenses against the income estimated. The expenses are genuine and incurred necessarily and exclusively for the purpose of earning income. 3. The learned Assessing Officer and CIT (A) has erred in law and in facts by not allowing 50% expenses against the income earned 0.15% of bank deposits. 2.1 The Ld. AR placed reliance on following decision in support to admit additional ground. National Thermal Power Corporation Vs. CIT [229 ITR 383] (SC) Jute Corporation of India Ltd. Vs. CIT (187 ITR 688) (SC) Ahmedabad Electricity Co. Ltd. Vs. CIT (199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3.1 It was submitted that, during the course of business various customers approached the assessee for obtaining adjustment bills. The customers make deposit in cash and in turn, take cheque from the assessee for amount slightly lesser than the amount on deposit. The difference representing the commission realized by assessee. It is submitted that many times commission is paid in cash. It is also submitted that the prevalent commission on such dealing was at around 0.15%. 3.2 It was submitted that, the amount deposited in bank accounts does not belong to assessee, and therefore taxing the said deposits in the bank account of assessee also does not arise. It was also submitted that identical issue was raised in the case of Shri Mukesh Chok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever noted that assessee was carrying out the activity of providing accommodation entries for commission varying to 0.25% to 0.5% and from the statement recorded for the year under consideration, it was noted by the Ld. CIT(A) rate of Commission was nothing less than 0.37%. 5.1 Before us, the Ld. AR vehemently relied on the decision of Coordinate Bench of the Tribunal in similar facts like that of assessee for Assessment Year 2008-09. This Tribunal rejected the contention of the Revenue to treat the entire deposit as unexplained cash credit. This Tribunal observed that: The theory of Assessing Officer to treat the entire deposit as unexplained cash credits, cannot be accepted in the light of assessment orders in the case of beneficiaries a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the same reasons cited above, in our opinion, no question of law arises. 6. In the result, the Appeals are dismissed. 3. We are conscious that unlike in case No.54/17 and connected Appeals, in the present case, the Assessing Officer had added the entire sum not limiting to the commission charged. However, CIT (A) had applied the percentage of commission deleting the rest of the additions. 4. In the result, Income Tax Appeal is dismissed. 5.3 Considering the fact that these appeals pertains to very old Assessment Years no purpose would be served by remanding to the Ld. AO to adjudicate these issues afresh as due to the time lapse there will be lot of documents and personal verification which could not be made available. Respectfully foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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