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| The Tax Publishers2020 TaxPub(DT) 3054 (Mum-Trib) INCOME TAX ACT, 1961
Section 143(3)
In case assessee was engaged in providing accommodation entries but failed to give list of beneficiaries then addition on account of commission was restricted 2% of cash credit entries as deposited in assessee's bank account.
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Assessment - Addition to income - Commission on deposit in assessee's bank account relating to accommodation entries given by assessee - Assessee unable to provide list of beneficiaries
Assessee maintained a bank account in which deposits was found relating to accommodation entries given by assessee. As assessee failed to file any details of persons to whom entries were given. AO estimated profit rate at the rate of 5% of cash deposit in bank account as against declared by assessee at 1%. CIT(A) restricted addition to 3%. Held: In all probabilities there had to be an estimate as assessee was unable to give list of beneficiaries, so that, commission could be estimate. Profit rate estimated by CIT(A) seemed reasonable but still a more reasonable value could be taken and hence, addition was restricted 2% of cash credit entries as deposited in assessee's bank account.
REFERRED :
FAVOUR : Partly in assessee's favour.
A.Y. : 2005-06
IN THE ITAT, MUMBAI BENCH
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