Protective additions for accommodation entries were deleted where the controller admitted the commission income in his own tax return.

Protective additions made in the hands of an assessee-company for accommodation entries, alleged unexplained investment in shares, and related commission income were not sustained where the person controlling the company stated that the commission had already been offered as his taxable income for the relevant years. The Tribunal noted that the substantive taxability of that commission was to be examined in his own appeals, and the material before it supported deletion of the protective additions in the company's hands. The Revenue's challenge therefore failed, and the additions were not maintained in these appeals.

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Issues: Whether the Revenue's appeals against deletion of protective additions made on account of accommodation entries, alleged unexplained investment in shares, and commission income survived in view of the statement and letter of the person who controlled the assessee-company acknowledging the commission as part of his taxable income.

Analysis: The assessee placed before the Tribunal the statement and letter of Shri Pradeep Kumar Jindal, who ed that he controlled the company and had already treated the commission earned from the accommodation entries as part of his taxable income for the relevant years. On that basis, the Tribunal noted that the substantive issue was to be adjudicated in his own appeals and that the material placed supported the order of the first appellate authority deleting the protective additions in the hands of the assessee-company.

Conclusion: The deletion of the protective additions was upheld and the Revenue's appeals were dismissed.

Final Conclusion: The assessee succeeded, and the impugned additions did not survive in these appeals, leaving the Revenue's challenge unsuccessful.

Ratio Decidendi: Where the person controlling the assessee-company acknowledges the related commission income in his own hands and the substantive taxability is to be examined in his appeals, protective additions in the company's hands need not be sustained.

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