2020 (7) TMI 364

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....sessment year 2006-07, 2007-08 and 2011-12. ITA no.2991/Mum./2017 - A.Y. 2006-07 ITA no.2992/Mum./2017 - A.Y. 2007-08 Revenue's Appeal 2. The grounds raided by the Revenue in both the assessment years under appeal are only on the common issue of partial relief granted by the learned Commissioner (Appeals) with regard to estimation of commission income on accommodation entries. 3. Brief facts are, the assessee company is stated to be engaged in trading in merchandise goods. The returns of income filed for the assessment years under consideration were initially processed under section 143(1) of the Income Tax Act, 1961 (for short "the Act"). Subsequently, on the basis of information received indicating that income chargeable....

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....mate the commission income @ 1% of both purchase and sale turnover shown by the assessee in all the assessment years under appeal. Being aggrieved with the assessment orders so passed, the assessee preferred appeals before the first appellate authority. 4. After considering the submissions of the assessee and other material on record, though, learned Commissioner (Appeals) agreed with the Assessing Officer that the assessee has not carried out any genuine purchase and sale transaction and is only an entry provider, however, he restricted the rate of commission to 0.15%, that too, either on purchase or on sales turnover. Being aggrieved with the aforesaid decision of learned Commissioner (Appeals), the Revenue is in appeal before the Trib....

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.... Therefore, the contention of the assessee that it is carrying on genuine purchase and sale transaction is unacceptable. Thus, in these circumstances, the assessee being engaged in providing accommodation bills / entries, estimation of commission income on the basis of its turnover is just and proper. Therefore, the only issue which needs to be decided is what is the reasonable rate of commission which can be estimated on such accommodation transaction and whether such commission can be charged on both purchase and sale turnover shown by the assessee. It is evident, while the Assessing Officer has charged commission @ 1% on both purchase and sale turnover, learned Commissioner (Appeals) has reduced the rate of commission to 0.15% and that t....

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....oss objections after obtaining second opinion from another Counsel, the assessee kept quite as he was of the impression that the earlier Counsel would be obtaining second opinion from some other Counsel. Whereas, it is stated that the earlier Counsel was carrying an impression that the assessee would be obtaining a second opinion and thereafter the cross objection would be filed. It is stated that in view of the confusion arising out of obtaining of second opinion, the filing of cross objections got delayed. Thus, it is requested that the delay being due to a reasonable cause should be condoned. 9. Having carefully considered the cause of delay shown by the assessee, we are of the view that it is not at all acceptable and is only a cooke....