2026 (7) TMI 1977

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....9 to 2021-22, arise against the Commissioner of Income Tax (Appeals) [in short, the "CIT(A)"], Delhi's-23 orders, all dated 09.10.2025, having DINs and orders no. ITBA/APL/S/250/2025-26/1081587654(1),1081587654(1), 1081587654(1) and 1081587654, involving proceedings under section 153C of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). Heard both the parties. Case file perused. 2. It transpires during the course of hearing that the assessee seeks to canvass its first and foremost substantive ground challenging both the learned lower authorities' action initiating/framing section 153C proceedings and assessments in its case; all dated 30.03.2024. We notice from a perusal of the case records that the learned departmental....

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....d the assessee's total sales entries to the tune of Rs. 7,38,51,580/- availed from the aforesaid searched parties which stood assessed @ 6.9% commission component resulting in addition of Rs. 50,97,973/- as partly restricted in the CIT(A)'s lower appellate order, as under: "11.4 I am of the opinion & considering the material seized, the nature of business, and the prevailing industry practice, it is reasonable to hold that the appellant earned commission income on such transactions. I find that the AO has charged commission income @6.90% which is on very higher side as there are several judicial precedents wherein commission income on such transactions were held to be charged @ 1 to 1.5%. It is also a matter of facts that the appel....

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....tuated persons. We thus find no reason to interfere with the same since supported by detailed evidences gathered during search and the inquiries carried out thereafter. We uphold the learned lower authorities' action treating the assessee's sales sourced from M/s. K.K. Spun group of companies as bogus ones in principle. 6. Next comes the equally important aspects of quantification of the impugned addition. Learned CIT(A) has admittedly granted part relief to the assessee whilst reducing the commission component on the aforesaid alleged bogus sales to 3% (supra) which is not found to be based on any segmental comparables as well. The facts also remains that the impugned sales are found to be treated as bogus once only, we do not see any l....