M/S. REVIVE TRADERS PVT. LTD., (STRIKE-OFF), LEGAL REPRESENTATIVE KAMAR KR. AGARWAL,KOLKATA vs. ITO, WARD - 12(2), KOLKATA , KOLKATA

This assessee’s appeal is directed against the CIT(A), Kolkata-4’s order, dated 12- 06-2018 passed in case no. 2088/CIT(A)-4/2014-15 involving proceedings u/s 143(3) of the I.T Act, 1961 ( in short ‘Act’).

I noticed at the outset the instant plea is emanated from a search & seizure operation dated 10-10-09 conducted in M/s. Badalia Group of cases. The AO noticed during assessment that the assesse had made deposits in its two bank accounts of Rs. 5,69,78,325/- in the relevant previous year. It claimed to have derived commission income @ 100 per lakh to Rs.56,978/- only whereas the Assessing Officer assessed the same @250 per lakh resulting in addition of Rs. 1,42,446/-.

The assessee preferred appeal. The CIT(A) has made the impugned enhancement by assessing the above commission income @ Rs. 1,000/- per lakh from Rs. 250/- per lakh added during assessment.

I have given my thoughtful consideration to the rival contentions. It emerges during the course of hearing that the department has assessed the assessee’s sister concern, M/s. Sawaria Trading Pvt. Ltd involved in the very search in A/Y 2009-10 at commission rate of Rs. 250/- per lakh involving similar deposits. Learned departmental representative fails to dispute all these clinching developments. I therefore partly accept the assessee’s arguments in the instant appeal and direct the Assessing Officer to re- compute assessee’s commission income @ 250 per lakh only. Necessary computation to follow.

This assessee’s appeal is partly allowed in above terms. Order pronounced in the Court on 20-03-2019