2024 (10) TMI 1089

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....Appeals) has erred in law and in facts in passing order u/s. 250 of the Act. 2. The Ld. Commissioner of Income Tax (Appeals) has erred in law and in facts in upholding the validity of the order passed u/s. 143(3)(3) r.w.s. 147 of the Act. The Ld. Commissioner of Income-Tax (Appeals) ought to have appreciated that the assessment reopened u/s. 143 r.w.s. 147 of the Act was invalid in as much as the notice u/s. 148 of the Act was not issued in accordance with the provisions of the Act. 3. The Ld. Commissioner of Income-tax (Appeals) has erred in law and in facts in not appreciating that the provisions of s. 148 and s. 151 of the Act were not complied with while issuing the notice u/s. 148 of the Act. 4. The Ld. Commi....

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....d in law and in facts by not allowing 50% expenses against the income earned 0.15% of bank deposits." 2.1 The Ld. AR placed reliance on following decision in support to admit additional ground. * National Thermal Power Corporation Vs. CIT [229 ITR 383] (SC) * Jute Corporation of India Ltd. Vs. CIT (187 ITR 688) (SC) * Ahmedabad Electricity Co. Ltd. Vs. CIT (199 ITR 351) (Bom) 2.2 The Ld. DR though objected to the admission of addition ground however could not controvert that the issue raised in the additional ground can be adjudicated based on the facts already available on record. 2.3 Upon perusal of the additional grounds, we find that these are directly connected with the addition made in the hands of ....

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....is submitted that many times commission is paid in cash. It is also submitted that the prevalent commission on such dealing was at around 0.15%. 3.2 It was submitted that, the amount deposited in bank accounts does not belong to assessee, and therefore taxing the said deposits in the bank account of assessee also does not arise. It was also submitted that identical issue was raised in the case of Shri Mukesh Chokshi and his various corporate entities in earlier assessment years wherein the entire deposits in the bank accounts were assessed to tax. Co-ordinate Bench of this Tribunal took a view that, since these concerns are involved in providing accommodation entries, a percentage of commission should be assessed in their hands and not t....

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....ied on the decision of Coordinate Bench of the Tribunal in similar facts like that of assessee for Assessment Year 2008-09. This Tribunal rejected the contention of the Revenue to treat the entire deposit as unexplained cash credit. This Tribunal observed that: "The theory of Assessing Officer to treat the entire deposit as unexplained cash credits, cannot be accepted in the light of assessment orders in the case of beneficiaries and also in the light of the fact that assessee is only concerned with the commission earned on providing accommodation entries. We, therefore, of the view that since the assessee itself has declared the commission on turnover at 0.15% which is more than the percentage considered to be reasonable by the Tribunal in....