2023 (7) TMI 1558

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..... ion and submissions of assessee, whole claim of expenses made in the P&L accounts towards earning of commission income shall be allowed and the net rate of commission earned by the assessee i.e., @0.47% of total turnover of accommodation entries after elimination of circular transaction is required to be add as income of assessee from commission. AO is therefore directed to give effect to the above order. Accordingly, ground no. 2 of revenue is allowed reversing the first appellate order.
Shri Chandra Mohan Garg, Judicial Member And Dr. B.R.R. Kumar, Accountant Member For the Assessee : Shri Ved Jain, Adv., Shri Aman Jain, CA, Ms. Akansha Birla, CA For the Revenue: Ms. Sapna Bhatia, CIT(DR). ORDER PER BENCH:- Above captioned appea .....

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..... otective basis in the hands of assessee and it was also justified and correct in making addition of Rs. 9,28,129/- on substantive basis being commission @0.25% of total impugned credits under facts and circumstances of the case which have been deleted by the ld. CIT (A) without any basis therefore impugned first appellate order may kindly be set aside by restoring that of the Assessing Officer. 4. Replying to the above the learned counsel of assessee submitted that the addition cannot be made in the hands of the conduit companies once the beneficiaries and accommodation entry provider are identified and addition of commission income has already been made in the hands of the accommodation entry provider. Further placing reliance on the .....

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..... round of revenue under identical facts and circumstance has been decided by the Tribunal in favour of the revenue and against the assessee reversing the first appellate order. Relevant paras 21 & 22 of Tribunal order (supra) are as follows:- 21. Therefore , as per the explanation and submissions of the assessee , whole of the expenses incurred in earning commission income shall be allowed and accordingly the net rate of commission earned by the assessee i.e. 0 .47% is the best which can be applied on the turnover of the accommodation entries after elimination of circular transactions. Thus the maximum addition which can be made in the hands of the assessee on account of commission earned on turnover of the accommodation entries worked out .....

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