Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Tribunal Upholds 0.15% Commission on Bank Credits, Rejects Assessee's Non-Ownership Claim in Accommodation Entry Case. The ITAT Delhi bench dismissed the appeals, upholding the orders of the revenue authorities. The tribunal confirmed the commission rate of 0.15% on all ...
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Provisions expressly mentioned in the judgment/order text.
Tribunal Upholds 0.15% Commission on Bank Credits, Rejects Assessee's Non-Ownership Claim in Accommodation Entry Case.
The ITAT Delhi bench dismissed the appeals, upholding the orders of the revenue authorities. The tribunal confirmed the commission rate of 0.15% on all credits in bank accounts used for routing accommodation entries, rejecting the assessee's claim of non-ownership of certain accounts. The tribunal found the assessee liable as the operator and beneficiary, affirming the correctness of the commission charges applied. No separate judgment was issued by the judges.
Issues involved: Appeal against orders of ld. CIT(A)-24, New Delhi dated 03.09.2019 regarding additions made on basis of incorrect details, ownership of bank accounts, and commission charges.
Issue 1 - Incorrect additions: The assessee contended that the ld. CIT(A) passed an erroneous order confirming additions based on incorrect details and false information. The assessee disputed ownership of certain bank accounts and requested deletion of additions related to those transactions.
Issue 2 - Commission charges: A survey u/s 133A revealed that the assessee operated various entities providing accommodation entries. The assessee admitted to providing entries totaling significant amounts over multiple assessment years. The assessee disclosed a commission rate of 0.15% per lakh of entry provided, which the revenue authorities accepted. The commission was calculated on all credits in bank accounts used for routing entries.
Judgment: The ITAT Delhi bench heard the appeals collectively due to identical issues. The tribunal upheld the commission charged at 0.15% despite the assessee's argument that accounts not belonging to them should not be considered. The tribunal dismissed the plea, stating that the assessee, as the operator and beneficiary of the accounts, was liable for the commission earned. The tribunal also noted that the lower commission rate accounted for multiple routing of entries. Consequently, the appeals of the assessee were dismissed, affirming the orders of the revenue authorities.
Separate Judgment: No separate judgment was delivered by the judges.
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