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Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R
Per Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by revenue for Assessment Year [AY] 2010-11 contest the common order of the Ld. Commissioner of Income-Tax (Appeals)-50 [CIT(A)], Mumbai dated 31/03/2016 by raising the following sole ground of appeal: - Chaitali Sales Agency Private Limited Assessment Year-2010-11 “On the facts and circumstances of the case and in law, the Learned CIT(A) erred in reducing the estimation of income of the assessee, on account of providing accommodation entries from 4% of the aggregate value of the accommodation entries provided to 0.15% of the aggregate value of the accommodation entries provided by failing to appreciate that the assessee, when accorded an opportunity to do so, failed in providing sufficient details about the margins it earned on providing accommodation entries.” The appellant prays that the order of the CIT(A), on the above grounds be set aside and that of the Assessing Officer be restored.
The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax, Central Circle-44, Mumbai [AO] u/s. 144/142(1) read with section 153C of the Income Tax Act,1961 on 28/02/2013 wherein the income of the assessee has been assessed at Rs.157.88 Lacs.
Pursuant to search operations on 04/02/2011 in the case of M/s JIK Industries Private Limited and its associates, it was found that the assessee provided accommodation sales bill to the aforesaid entity. Consequently, notice u/s 153C was issued to the issue which was followed by notices u/s 142(1). However, the assessee neither filed return of income nor provided the requisite documents as called for by Ld. AO. Resultantly, the commission income of the assessee was estimated @4% on aggregate receipts reflected in the bank account of the assessee, the details of which has been extracted at para-11 of the quantum assessment order. The same resulted into impugned additions of Rs.157.88 Lacs in the hands of the assessee.
Aggrieved, the assessee contested the same with partial success before Ld. CIT(A) vide common order dated 31/03/2016 wherein the estimated rate of 4% was reduced to 0.15%. Aggrieved, the revenue is in further appeal before us.