2024 (10) TMI 1090

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....15-16. 2. The assessee has raised the following grounds of appeal: "1 The Ld. CIT(appeals) has erred in law and facts in upholding the order of the A.O. assessing income at Rs. 1,25,45,835/- as against Nil returned income declared by the assessee after set off of brought forward business loss of Rs. 76,75,095/- 2. He has erred in upholding the estimation of commission @ 2% on total deposits in the bank as against 0.5% agreed by the assessee without properly appreciating the facts and estimation of income at 0.5% in similar other cases. He has erred in law and facts in not properly appreciating and accepting the written submission furnished by the assessee during course of assessment proceedings. 4 He h....

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.... but during assessment proceedings the assessee had admitted to have carried out no business transactions but, on the contrary, to be engaged only in providing accommodation entry to beneficiaries. The AO accepted this explanation of the assessee and proposed to tax commission income by estimating the same on the total deposits reflected in the various bank accounts of the assessee. It was pointed out that while the AO proposed to estimate the commission income by applying the rate of 2% to the total bank deposits of Rs. 24,35,36,961/- in three bank accounts of the assessee in three different banks noted at page-3 of the assessment order. The assessee, however, pleaded the estimation @ 0.5% and also pointed out various decisions of the ITAT....

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....Indusind Bank Rs. 8,30,37,802/-, Rajkot Nagarik Sahkari Bank Rs. 9,11,05,736/- and RBL Bank of Rs. 6,93,92,424/-. The A.O in the assessment order has observed that the appellant is engaged in the business of providing accommodation entries and he accordingly estimated the Income @2% of the total receipt and commission. The appellant before the A.O itself has agreed for addition of commission @0.5%. Appellant during the appellate proceedings has not made any submission. The appellant in the statement of facts has stated that he has agreed for the estimation of commission @0.5%. The appellant has not given any justification for estimating the commission @0.5%, therefore, addition made by A.O is confirmed." 6. The contention of the Ld. Coun....

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....er passed in the Central Circle has been enclosed including copy of decision of CIT(A) and the order submitted were as under :- 1. Nexus Software Ltd A.=. 2009-10 PAN: AAACN6974K: In this case assessed CC-2(2) the Assessing Officer had held as under: Para 4.3 "In view of the discussion held above and the statement of the Director of the assessee company referred to above it is held that the assessee company is involved in the business of providing accommodation entries and acts as a pass through entity. Thus as admitted by the direction of the assessee company in his statement referred to above that it gets a commission of 0.5% on providing accommodation entries and amount of Rs. 26.35,726/- is hereby held to be the total ....