Accommodation entry commission income: Tribunal applies 0.15% turnover rate and restricts the addition.

Accommodation-entry commission income was examined on the question whether turnover should be taxed at 1% or 0.15%. The Tribunal followed its coordinate bench ruling in the assessee's own earlier year, held that 0.15% was the appropriate commission rate on such turnover, and restricted the addition accordingly. The same reasoning was applied to the present appeals because the facts were identical, resulting in relief to the assessee on the rate applied to the alleged accommodation entry business.

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Issues: Whether the commission income arising from providing accommodation entries was to be computed at 1% of turnover as adopted by the Assessing Officer, or at 0.15% of turnover as contended by the assessee.

Analysis: The appeals involved identical facts and a similar issue already decided in the assessee's own case for an earlier assessment year. The Tribunal followed its coordinate bench decision, which had accepted 0.15% as the appropriate rate of commission on accommodation entry turnover instead of 1%, and applied the same reasoning to the present appeals.

Conclusion: The addition was to be restricted by applying commission at 0.15% of the turnover, and the assessee succeeded on the issue.

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