TaxTMI 
TaxTMI 
2026 (3) TMI 799
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....for A.Y. 2021-22. 2. The assessee has taken the following grounds of appeal: "1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in directing the AO to make the addition of Rs. 2,89,278/- on account of commission earned from providing bogus bill accommodation entry in the hands of the Appellant substantively. 2. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in directing AO to make the addition substantively, which was originally made by AO only on protective basis. 3. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) erred in enhancing the assessment by treat....
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....00,000/- and commission income of Rs.2,65,000/- aggregating to Rs.5,65,000/-. The assessee was asked to furnish details regarding the nature and source of the said income along with supporting evidences. In response, the assessee submitted that the brokerage and commission income had been earned from supplying cloth and providing GST billing services on commission basis. However, the Assessing Officer observed that the assessee failed to furnish any documentary evidence such as bills, vouchers, details of parties from whom such commission or brokerage was received, delivery challans or any other corroborative material. The assessee merely produced ledger extracts showing receipt of the amounts in cash, which according to the Assessing Offic....
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....CIT(Appeals). With respect to Grounds No. 1 and 3 relating to the addition of Rs.5,65,000/- under section 68 of the Act and application of section 115BBE of the Act, the learned CIT(Appeals) observed that the assessee had declared the brokerage and commission income in the return of income itself and the same formed part of the business income of the assessee. The learned CIT(Appeals) held that the Assessing Officer had made the addition under section 68 of the Act without bringing any material on record to demonstrate that the income declared by the assessee was false or fictitious. The learned CIT(Appeals) also observed that the income had already been disclosed in the return of income and therefore the addition made by the Assessing Offi....
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....r passed by the CIT(Appeals) dismissing the appeal of the assessee. 9. We have carefully considered the rival submissions and perused the material available on record including the assessment order and the order passed by the learned CIT(Appeals). The primary issue raised in the present appeal relates to the addition made on account of commission income arising from bogus billing accommodation entries and the findings recorded by the learned CIT(Appeals) in confirming the same. 10. From the material available on record, it is evident that the incriminating material relating to bogus invoices was found during the course of search proceedings and such invoices were found from the possession of the assessee. The assessee in his statement....
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....e assessee himself had admitted the transactions, the addition ought to be made substantively in the hands of the assessee instead of on protective basis. 12. We find that the findings recorded by the learned CIT(Appeals) are based on a proper appreciation of the facts and evidence available on record. The assessee has not been able to bring any material before us to controvert the findings recorded by the learned CIT(Appeals). On the contrary, the material available on record including the seized documents and the statements recorded during the course of search proceedings clearly establish the involvement of the assessee in providing accommodation entries through bogus billing and earning commission income therefrom. 13. It is a set....