TaxTMI 
TaxTMI 
2025 (7) TMI 100
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....earned by providing accommodation entries. 2. Whether on the facts and in law, the Ld. CIT (A) is correct in deleting the addition ignoring the facts that the company is a separate, independent and legal entity on its own both as per provisions of the Income Tax Act as well as Companies Act and it needs to be taxed separately for the income earned by it by facilitation of accommodation entries. 3. That on the facts and in circumstances of the case, the Ld. CIT (A) has erred in deleting the addition of Rs. 5,20,12,440/- made on account of undisclosed sources u/s 68 for unexplained entries in the bank account ignoring the fact that the assessee has failed to produce any concrete and any additional evidences in support of this contention. 4. That on the facts and in the circumstances of the Ld. CIT (A) has erred in deleting the addition of Rs. 1,30,030/- made on account of accounted commission ignoring the facts that the assessee has failed to disclose the commission earned from providing accommodation entries. 5. The order of Ld. CIT(A) is erroneous and is not tenable on facts and in law. 6. The grounds of appeal are without prejudice to e....
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....s been decided in favour of the Assessee thereon by dismissing the Ground of the Revenue in the case of The ACIT Vs. M/s Holeon Traders Pvt. Ltd. in ITA Nos. 4958 to 4962/Del/2019 for Assessment Year 2012-13 to 2016-17 vide order dated 21/07/2023. 6. We have heard both the parties and perused the material available on record. The Co-ordinate Bench of the Tribunal in the case of Holeon Traders Pvt. Ltd. (supra) vide order dated 21/07/2023 upheld the order of the Ld. CIT(A) in deleting the protective addition made by the A.O. in following manners:- "2. Since issues involved in revenue's appeal ITA No. 4958 to 4962/Del/2019 for AY's 2012-13 to 2016-17 are identical and similar, they were heard together and being adjudicated by this common order. As agreed by the learned representatives of both the sides we are taking up ITA No. 4958/Del/2019 for AY 2012- 13 as lead case, wherein the revenue has raised following two effective grounds of appeal:- 1. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in law and on facts in deleting the protective addition of Rs. 54,64,44,954/- made by the AO on account of unexplained cash credits, without cons....
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.... commission addition has been reversed by making addition @0.47% to the turnover of accommodation entries after elimination of circular transaction. Therefore ground no. 2 of revenue may kindly be allowed reversing the conclusion of ld. CIT(A). 6. On careful consideration of above, following the order of Tribunal in the case of Shri Anand Kumar Jain (supra) deletion of protective addition on account of unexplained cash credits is upheld and ground no. 1 of revenue is dismissed for AY 2012- 13." 7. By respectfully following the order of the Co-ordinate bench of the Tribunal in the case of Holeon Traders Pvt. Ltd. (supra), the deletion of the protective addition made in the hands of Assessee is hereby upheld, accordingly, the Ground No. 3 of the Revenue is dismissed. 8. The Ground No. 4 is regarding deletion of addition made on account of unaccounted commission. The Ld. Department's Representative submitted that the similar issue of commission has been decided by the Coordinate bench of the Tribunal in the case of Holeon Traders Pvt. Ltd. vide order dated 21/07/2023 in ITA No. 4958 to 4962/Del/2019, held that whole claim of expenses made in the P &L accounts toward....
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....ion of the Ld. Assessee's Representative that the Co-ordinate Bench of the Tribunal vide order dated 21/07/2023 in 4958 to 4962/Del/2019 upheld the addition on account of commission income which was deleted by the Ld. CIT(A). However, after passing the order on 21/07/2023, in ITA Nos. 4958 to 4962/Del/2019, a corrigendum has been issued by the Tribunal on 31/07/2023, wherein the Co-ordinate Bench of the Tribunal held that the Ld. CIT(A) was right in deleting the addition on account of commission income. The relevant portion of the corrigendum is reproduced as under:- "2. The order in revenue appeal ITA No. 4958 to 4962/Del/2019 was pronounced on 21.07.2023 and on perusal of the same it was noticed that some factual inadvertent mistakes and omissions have been crept therein therefore, the earlier paras no. 7 & 8 of said order are being replaced with following modified paras:- 7. Regarding ground no. 2 of revenue we note that identical grievance/ground of revenue under identical facts and circumstance has been decided by the Tribunal in favour of the assessee and against the revenue reversing the first appellate order, Relevant paras 21 & 22 of Tribunal order (s....