TaxTMI 
TaxTMI 
2016 (2) TMI 1216
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.... an individual is engaged in the business of trading in steel. For the assessment year under consideration, assessee filed her return of income on 29th September 2009, declaring total income of Rs. 76,22,674. During the assessment proceedings, the Assessing Officer, while verifying the Profit & Loss account, noticed that assessee had debited a sum of Rs. 1,18,68,677 towards brokerage payment. He, therefore, called upon the assessee to furnish the details of parties to whom the brokerage was paid and the nature of services rendered by them. As observed by the Assessing Officer, the assessee instead of furnishing the details called for, sought adjournment on one pretext or other. Finally, on 14th November 2011, assessee furnished a list of pa....
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.... statement recorded under section 131 of the Act, assessee admitted that certain brokerage payments were actually accommodation entries and bogus bills were made by the concerned parties. She quantified such brokerage payment at Rs. 61,71,082. On the basis of the admission made by the assessee in the remand proceeding, Assessing Officer submitted the remand report recommending disallowance of brokerage payment. In view of the observations made by the Assessing Officer in the remand report, assessee vide letter dated 4th March 2013, filed before the first appellate authority withdrew her ground challenging the addition made on account of brokerage payment of Rs. 89,19,677. As a result, learned Commissioner (Appeals) dismissed the ground rais....
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....aving decided to withdraw the ground on the issue of addition of brokerage payment, she cannot agitate the issue again before this forum by putting the blame on the Assessing Officer. 7. We have considered the submissions of the parties and perused the material available on record. There is no dispute to the fact that vide letter dated 4th March 2013, filed before the first appellate authority, assessee has withdrawn the ground challenging the addition of brokerage payment of Rs. 89,19,677. Learned Counsel appearing for the assessee had also accepted the aforesaid factual position. However, it is the claim of the assessee that the decision to withdraw the ground was due to the fact that assessee was misled by the Assessing Officer in belie....
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....onsideration of such facts and materials, the Assessing Officer observed that brokerage payment to the tune of Rs. 61,71,082, is not genuine, hence, required to be added. Thus, from the aforesaid facts, it is very much clear that assessee was given full opportunity to explain her case on the basis of material available before the Assessing Officer and the assessee being conscious of the fact that the parties to whom she claimed to have paid brokerage have admitted that they had not provided any services to the assessee and only provided accommodation bills, accepted the said fact in the statement recorded under section 131. That being the case, the assessee took a conscious decision to withdraw her ground challenging the addition of brokera....