Tribunal upholds CIT(A)'s decision in favor of Revenue, confirming deletion and addition, no illegality found.

The Tribunal dismissed both the assessee's and Revenue's appeals, upholding the CIT(A)'s decision. The deletion of Rs. 15,00,000 and the addition of a 3% commission on Rs. 4,20,93,787 were confirmed. The Tribunal found no illegality or perversity in the CIT(A)'s order, ultimately ruling in favor of the Revenue. The decision was rendered in open court on 25.05.2023.

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Issues Involved:
1. Jurisdiction under Section 153C.
2. Incriminating Material and Natural Justice.
3. Computation of Commission.
4. Deletion of Addition by CIT(A).

Summary:

Jurisdiction under Section 153C:
The assessee challenged the jurisdiction of the A.O. under Section 153C, arguing that no seized material belonged to the appellant. The CIT(A) upheld the A.O.'s jurisdiction. During the hearing, these grounds were not pressed by the assessee and were determined against the assessee.

Incriminating Material and Natural Justice:
The assessee argued that the assessment under Section 153C was passed without incriminating material, jurisdiction, and without granting an opportunity to be heard. The assessee also claimed that the order was based on routine approval under Section 153D and violated natural justice by not providing a copy of the recorded statement and satisfaction note. These grounds were not pressed during the hearing and were determined against the assessee.

Computation of Commission:
The assessee contested the computation of commission at 3% on Rs. 4,20,93,787, arguing for multiple layers of commission. The CIT(A) computed the commission at 3% of the total deposits. The Tribunal upheld the CIT(A)'s computation, dismissing the assessee's contention to reduce the commission to 0.25%.

Deletion of Addition by CIT(A):
The Revenue appealed against the deletion of Rs. 4,35,93,787 by the CIT(A), who had actually deleted only Rs. 15,00,000 and confirmed Rs. 4,20,93,787 as accommodation entries with a 3% commission addition. The Tribunal upheld the CIT(A)'s decision, finding no illegality or perversity in the order.

Conclusion:
Both the assessee's and Revenue's appeals were dismissed. The Tribunal confirmed the CIT(A)'s findings, including the deletion of Rs. 15,00,000 and the addition of 3% commission on Rs. 4,20,93,787. The decision was pronounced in open court on 25.05.2023.

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