2024 (1) TMI 422

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....cer Ward-1(3)(7), Surat, under section 143(3) r.w.s 147 of the Income Tax Act, 1961. 2. Since the issue involved in all these appeals are common and identical except variance of amount, therefore these appeals have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. The facts as well as grounds of appeal narrated in assessee's appeal in ITA No. No.543/SRT/2023, for assessment year 2011-12, are taken into consideration for deciding these appeals en masse. 3. The grounds of appeal raised by the assessee in "lead" case in ITA No.543/SRT/2023 for A.Y. 2011-12 are as follows: "1. On the facts and in the circumstances of the case as well as in law on the subject, the lea....

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....23) are also dismissed, as not pressed. 5. Ground No.2 raised by the assessee relates to addition of Rs. 10,06,251/- on account of alleged estimation of commission income. 6. Succinctly, the factual panorama of the case is that assessee before us is an Individual and filed his return of income on 17.03.2012, declaring total income at Rs. 2,02,100/-. The assessee was subjected to survey u/s 133A of the Act which was carried in the premises of the assessee on 24.03.2015. As per the information with the Investigation Wing, Ahmedabad, the assessee was the entry provider through his Proprietary Concerns, M/s Radhika Enterprise and M/s Rishit Corporation. During the course of survey, it was found that the assessee was providing bogus bills ....

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....he assessee filed the declaration on Rs. 100 stamp papers on 08.05.2015 before the Investigation Wing giving details of the modus operandi followed by him in his business. Based on the above facts, the assessing officer quantified after giving opportunity of being heard to the assessee, the total amount of bogus sales / expenses entries given by the assessee during the impugned AY at Rs. 93,608/- and the bogus loans of Rs. 1,53,00,000/- which has been accepted by the assessee before the assessing officer. The assessing officer further made addition to the bogus bills` entries provided of Rs. 23,61,69,278/- on the basis of the impounded material found during the course of survey as per Annexure A-1 of the impounded material. Accordingly, the....

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....modation entries. The grievance is about not allowing any expenses incurred by the appellant for providing these entries which involved some other 3rd parties and also towards certain other administrative expenses in maintaining the establishment. The AR also submitted that the appellant in his statement during the course of survey in reply to Q.No.7 has stated that out of the commission income earned, he had to pay Rs. 5,000/- to Rs. 6,000/- per month for operating the accounts of other 3rd persons. In reply to Q.No.8, the appellant as also stated that parties approached him through some agents and for which he needed to pay the commission. I find merit in the contention of the appellant that he has to incur certain expenditure in carrying....

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....0% of gross commission at Rs. 2,51,563/- (20% of Rs. 12,57,814). Since the ld CIT(A) has allowed deduction on account of estimated expenditure @ 20% of the gross commission, the said deduction should be @ 50% of the gross commission, considering the nature of the business of the assessee. 10. Shri P.M. Jagasheth, Learned Counsel for the assessee, in respect of ground No.3, pleaded that addition of Rs. 2,47,004/- on account of difference in interest income between interest as per Form 26AS and interest income shown in the Return of Income, treated as alleged undisclosed interest income from alleged accommodation loan entries of loans to various parties, which is not acceptable. Since the alleged accommodation loan was treated as bogus and....

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....commission. Therefore, I direct the assessing officer to allow estimated expenditure @ 50% of the gross commission. Therefore, ground No.2 raised by the assessee is allowed partly. 14. Since I have adjudicated the issue in ground No.2 by taking lead case in ITA No. No.543/SRT/2023, for assessment year 2011-12, accordingly, my observations made in ITA No. No.543/SRT/2023, for assessment year 2011-12, shall apply mutatis mutandis to the other appeals of Assessee namely, in ITA Nos.544, 545,546 and 547/SRT/ 2023, (in respect of ground No.2) also. 15. Coming to ground No.3, I find merit in the propositions canvassed by ld Counsel of the assessee that addition of Rs. 2,47,004/- on account of difference in interest income between interest a....