TaxTMI 
TaxTMI 
2020 (12) TMI 1035
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....passed u/s.143(3) r.w.s. 153C of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 22/03/2016 by the ld. Dy. Commissioner of Income Tax, Central Circle 2(2), Mumbai (hereinafter referred to as ld. AO). Identical issues are involved in all these appeals and hence, they are taken up together and disposed off by this common order for the sake of convenience. 2. At the outset, the ld. AR submitted that he would be pressing only the ground Nos. 5 & 6 raised for A.Yrs.2008-09 to 2013-14 and ground No.4 and 5 A.Y.2014-15. Apart from this, the ld. AR stated that he would be pressing ground No.7 raised for A.Y.2013-14 and ground No.6 raised for A.Y.2014-15. All other grounds raised by the assessee for the respective assessment ye....
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....014-15 declaring total income of Rs. Nil after set off of brought forward loss and unabsorbed depreciation. 4.1. The ld. AO observed in his assessment order that assessee had deployed its funds in the form of share capital with huge share premium with various companies by providing bogus accommodation entries with the help of Shri Shirish C Shah to various parties and had earned commission income. The Director of the assessee company in his statement had admitted that it had earned 0.30% commission from the entries. The ld. AO however, observed that the commission in said trade ranges from 0.5% to 4%. The ld. AO considering the fact that commission is shared by number of brokers in between proceeded to add net commission in the hands of ....
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....e seeking for benefit of telescoping, the income declared by the assessee in the return, the ld. CIT(A) rejected the plea of the assessee on the ground that income recognised in the books is in the form of other income and cannot automatically be allowed benefit of telescoping the commission income without assessee having established that the income in the books is exclusively and wholly out of the commission income as computed by the ld. AO. The ld. CIT(A) observed that there is no business activity in reality and profit and loss statement of each of the assessment year is sham and is only a window dressing. Therefore, having admitted bogus nature of accounts, assessee cannot take advantage of any income declared in such accounts. 4.4. ....
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....4.7. We find that the ld. AR vehemently pleaded that the ld. CIT(A) had not allowed the telescoping of commission income against the income as per books of accounts on certain observations and the ld AR before us met each of those observations as under:- S.No. Observation Remarks 1. The assessee has not established that the income in the books of account is exclusively and wholly out of the commission income. The income declared by the assessee company comprises of Gross profit on sales on which commission is assessed by Ld. AO. Further, interest income on loans and advances given is appearing as other income. Both turnover and loans and advances given by the assessee company have been assessed as bogus. Thus, no real i....
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....ssessee and accordingly, vehemently relied on the order of the lower authorities. Accordingly, the ground Nos.5 & 6 for A.Yrs 2008-09 to 2013-14 and ground Nos. 4 & 5 for A.Y. 2014-15 are allowed. 5. With regard to ground No.7 raised by the assessee for A.Y.2013-14 and ground No.6 raised by the assessee for A.Y.2014-15 is concerned, we find that the ld. AO had taken the amount of increase in investments as under and computed the commission income of the assessee as under:- A.Y. Amount taken by AO Commission Amount 2013-14 93,72,19,784/- 93,72,198/- 2014-15 84,80,98,420/- 84,80,984/- 5.1. We find that the assessee company vide its written submissions before the ld. CIT(A) had submitted that amount of increase....