Accommodation entry commission cannot be separately taxed in a routing entity's hands when already assessed in entry operators' hands.

Where an assessee company was treated as a routing entity used for accommodation entries, separate commission income could not be assessed in its hands because the fund flow and beneficiary details had already been examined and the commission from the entry operations had been taxed in the hands of the entry operators in their individual capacity. The Tribunal therefore accepted that the company was not the ultimate beneficiary of the commission and upheld deletion of the addition.

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Issues: Whether separate commission income could be assessed in the hands of the assessee company, treated as a shell or pass-through concern used for routing accommodation entries.

Analysis: The Tribunal noted that the fund flow and beneficiary details had already been examined, and that the accommodation-entry operations were carried on by the entry operators through various concerns, including the assessee. It was found that commission on such entries had already been assessed in the hands of the entry operators in their individual capacity. On that basis, the assessee company was treated as only a routing entity and not the ultimate beneficiary of the commission.

Conclusion: No separate commission income was exigible in the hands of the assessee company, and the deletion of the addition was upheld.

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