Tribunal Adjusts Commission Rate in Appeal; Upholds Rs. 1.20 Lakh Addition Due to Lack of Specific Objections by Assessee.

The tribunal partially allowed the appeal by adjusting the commission income assessment to 0.50 paisa per Rs. 100, acknowledging the assessee's argument regarding the reasonable rate, while upholding the Assessing Officer's addition of Rs. 1.20 lakh under section 69 due to the absence of specific grounds raised by the assessee against this addition.

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Issues:
1. Addition of commission income at 1.00% by the Assessing Officer.
2. Addition of Rs. 1.20 lakh under section 69 of the Act.

Analysis:

Issue 1: Addition of Commission Income
The appeal was against the order of the National Faceless Appeal Centre, Delhi, for the assessment year 2013-14, based on the assessment order passed by the Assessing Officer under section 147 r.w.s. 144B of the Income Tax Act, 1961. The assessee, engaged in the business of cheque discounting and money transfer, had his case reopened due to a survey action in the case of M/s Hari Corporation. The Assessing Officer made an addition of commission income at 1.00% of total transactions/credit received in the assessee's bank account. The commission earned varied from 0.15% to 0.20% per Rs. 100, depending on various factors. The Ld. CIT(A) upheld the Assessing Officer's action. The assessee argued that the commission income was already shown in the return of income and that the Assessing Officer had assessed similar income at a much lower rate for other related entities. The tribunal considered the facts and circumstances and decided that assessing the commission income at 0.50 paisa per rupees hundred was reasonable, partially allowing the appeal.

Issue 2: Addition of Rs. 1.20 Lakh under Section 69
The Assessing Officer also made an addition of Rs. 1.20 lakh under section 69 of the Act, alleging that the amount was given to M/s Hari Corporation from the assessee's bank account for business purposes. The Ld. CIT(A) confirmed this addition. The assessee contended that the amount was duly shown in the balance sheet and no further addition was warranted. However, since no specific ground of appeal was raised by the assessee regarding this addition, and no application for additional grounds of appeal was filed, the tribunal rejected the submissions of the assessee against this addition.

In conclusion, the tribunal partly allowed the appeal of the assessee, considering the reasonable rate of commission income and the lack of specific grounds raised against the addition under section 69 of the Act.

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