Tribunal Upholds 0.5% Commission on Deposits for 2010-11, Rejecting Revenue's Appeal Against Consistent Assessment.

The ITAT Kolkata dismissed the revenue's appeal against the Ld. CIT(A) order for AY 2010-11. The tribunal upheld the decision to charge a commission at 0.5% of total deposits, consistent with the assessment for AY 2011-12, despite the revenue's argument against the applicability of res judicata. The order was pronounced on 5th April 2024.

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Issues Involved:
The appeal by revenue against Ld. CIT(A) order for AY 2010-11.

Issue 1: Service of Notice
The notice of hearing upon the legal heir of the assessee was attempted but failed. The notice was eventually served by affixture. The Ld. CIT-DR requested the case to be proceeded ex-parte due to the assessee's lack of interest.

Details: The notice was sent to the legal heir of the assessee but was returned as the legal heir failed to accept it. After several attempts, the notice was served by affixture. The appeal was disposed of with the assistance of Ld. CIT-DR.

Issue 2: Charge of Commission
The revenue raised the issue against Ld. CIT(A) order directing the AO to charge commission at 0.5% of total deposits, ignoring the principle of res-judicata in income tax proceedings.

Details: The AO added undisclosed income of Rs. 1,33,22,17,440 as commission earned by the assessee. In the AY 2011-12, the appellant's income was assessed at 0.5% of total deposits, treating it as commission earned. The Ld. CIT(A) partly allowed the appeal, directing the AO to compute income at 0.5% of total deposits.

Conclusion:
The ITAT Kolkata upheld the Ld. CIT(A) order, dismissing the revenue's appeal. The commission was charged at 0.5% of total deposits based on similar facts from the AY 2011-12. The appeal by the revenue was dismissed, and the order was pronounced on 5th April 2024.

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