2022 (11) TMI 768

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....e common and both the appeals were heard together they are being disposed off by way of this consolidated order. 2. The common grounds raised read as under: 1. Whether on the facts and in the circumstances of the case and in law the Ld. CIT(A) was legally justified in holding that the additions made in the course of proceedings u/s. 153C of the Income Tax Act, 1961 were not warranted having regard to the judgment of this court in CIT Vs. Kabul Chawla (380) ITR 573. 2. Whether on the facts and the circumstances of the case and in law the Ld. CIT(A) was legally justified in not appreciating that Revenue has filed various SLPs against the decision of the jurisdictional High Court in CIT Vs. Kabul Chawla in Apex Court and t....

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....itted that the assessee is an investment company and duly registered as NBFC with the Reserve Bank of India and main business of the company is to invest and trade in shares, securities, debentures and allied financial instruments & activities. In view of the same the commission received on the securities towards sub broker ship of marketing of investments in share, securities and bonds etc. are within the preview of the business activities of the assessee company. These activities are incidental in the main business of investments in shares & securities. Since the commission were received on account of services rendered towards procurement of sales order & brokerage were received on account of services rendered towards sub-broker ship for ....

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....ted as income of the assessee. In the light of the above, it is clear that the income earned by the assessee from commission and consultancy charges amounting to Rs. 1,37,55,640/- is not his business income and accordingly, the same is taxed under the head "income from other sources." Penalty proceedings u/s. 271(1)(c) are initiated separately with respect to this addition." 5. Against the above order, the assessee appealed before the CIT(A). The Ld. CIT(A) has elaborately noted the submission of the assessee. It was also noted that the original return under Section 139 was filed on 31.10.2003 which was processed under Section 143(1) and assessment was completed under Section 143(3) on 20.12.2005. The Assessing Officer made the ....

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....pleted and shifting of commission/consultancy income from business income to the head of income from other sources was not based on the basis of any seized material. Therefore, the Assessing Officer is directed to confine its assessment on the basis of already completed assessment. 6. Against above order, the Revenue has filed appeal before us. The Ld. Departmental Representative relied upon the orders of the Assessing Officer. We also noted that in the grounds of appeal, Revenue has not disputed the fact that the assessment is not based upon any incriminating material found during the search but the Revenue's grievance is that the Revenue has filed SLP against the decision of Hon'ble Jurisdictional High Court in the case of Kabu....