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Facts
The Revenue filed appeals against the CIT(A)'s order reducing the commission on accommodation entries from 1% to 0.15%. The Revenue's appeals were time-barred, but the delay was condoned. The assessee's cross-objections were dismissed as withdrawn.
Held
The Tribunal followed its co-ordinate benches' decisions in the assessee's own cases for subsequent years, which upheld the CIT(A)'s view of fixing the commission at 0.15%. Consequently, the Tribunal upheld the CIT(A)'s order.
Key Issues
Whether the commission for accommodation entries should be fixed at 1% as determined by the AO or 0.15% as determined by the CIT(A), considering previous tribunal decisions.
Sections Cited
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Income Tax Appellate Tribunal, “C” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN, JM & SHRI RAJESH KUMAR, AM
& 2073/KOL/2024 are appeals filed by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] even dated 08.05.2024 for the AYs 2011-12 & 2014-15. The CO No. 36/KOL/2025 is the cross objection filed by the assessee in the Revenue’s appeal arising in A.Y. 2014-15.
The appeals filed by the Revenue are time barred by 92 days for which the Revenue has filed petition for condonation of delay. The reasons mentioned are reasonable and the same are accepted and the delay is condoned.
At the time of hearing, the ld. AR withdrew his cross objections. Consequently, the cross objections filed by the assessee stands dismissed as withdrawn.
In respect of appeals of the Revenue in & 2073/Kol/2024, it was submitted by the ld. Sr. DR that in the course of assessment proceedings, the ld. AO had treated an amount of ₹13.78 crores for the A.Y. 2011-12 and amount of ₹7.02 crores for the A.Y. 2014-15 as accommodation entries. The ld. AO had treated the assessee to have received 1% as the commission for providing the accommodation entries. It was submitted that the ld. CIT (A) had reduced the percentage from 1% to 0.15%. It was submitted that against such reduction of the percentage of commission from 1% to 0.15%, Revenue is in appeal.
In reply the, ld. AR on behalf of the assessee placed before us the copy of the decision of the co-ordinate bench of this Tribunal in assessee’s own case in vide order dated 31.12.2024, wherein the co-ordinate Benches of this Tribunal has upheld the view of the ld. CIT (A) that the commission is to be fixed at 0.15%. The ld. AR also drew our attention of the assessee’s own case for the A.Y. 2012- 13 in and 1034/KOL/2024 vide order dated
We have considered the rival contentions. On perusal of the facts in the present case clearly shows that in the assessee’s own case for the immediately succeeding year the co-ordinate benches of this Tribunal has upheld the order of the ld. CIT (A) confirming the commission at 0.15% as against 1% fixed by the AO. As it is noticed that the co- ordinate Benches of this Tribunal in assessee’s own case has accepted the percentage of 0.15% for the immediately succeeding years, respectfully following the decisions of the co-ordinate Bench of this Tribunal in assessee’s own case as also following the principle of judicial discipline, the order of the ld. CIT (A) stands upheld and the AO is directed to assess the income of the assessee at 0.15% treating the same as commission income.
In the result, the appeals of the Revenue and the CO of the assessee are dismissed.
Order pronounced in the open court on 21.04. 2025.