ACIT CENTRAL CIRCLE 3(2), MUMBAI vs. SAMNIK GENERAL TRADING COMPANY PRIVATE LIMITED, MUMBAI

ITA 9127/MUM/2025Status: DisposedITAT Mumbai16 March 2026AY 2013-14Bench: SHRI SAKTIJIT DEY (Vice President), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that commission income can only be expected from beneficiaries availing accommodation entries through sales invoices. The Tribunal also noted that the First Appellate Authority had already deleted the commission on purchase turnover and the issue on sales turnover was settled under the Vivad Se Vishwas Scheme. Thus, the appeal by the Department was dismissed.

What were the facts?

The assessee, a scrap dealer, filed a return declaring a loss. The Assessing Officer (AO) initiated proceedings based on information that the assessee was involved in providing accommodation entries. The AO estimated commission income on both purchase and sales turnover, adding it to the assessee's income.

What were the issues?

Whether commission income can be estimated on both purchase and sales turnover when accommodation entries are suspected? Whether the Vivad Se Vishwas Scheme settlement impacts the addition on commission income?

Which sections of the Income-tax Act were involved?

Section 133(6),Section 143(3),Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

For Appellant: Ms. Khushali Desai
For Respondent: Shri Nayanjyoti Nath, Sr.- AR
Hearing: 10.03.2026Pronounced: 16.03.2026

Per Saktijit Dey, Vice President:

Captioned appeal by the Revenue arises out of order dated 09.10.2025 passed by Commissioner of Income Tax (Appeal), [CIT(A)] Mumbai for the Assessment Year (AY) 2013-14. 2. The dispute in the present appeal is confined to the solitary issue of deletion of addition of Rs.36,35,979/-, being alleged commission received by the assessee while providing accommodation entries.

2 Samnik General Trading Co. P. Ltd.

3.

Briefly the facts are, the assessee is a resident corporate entity stated to be engaged in the business as scrap dealer. For the assessment year under dispute, assessee filed its return of income on 30.09.2011, declari

The order continues below.

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