INCOME TAX OFFICER, WARD-1(1), KOLKATA, KOLKATA V. SAANVI DEVELOPERS AND REALTORS PVT LTD, KOLKATA

ITA 2072/KOL/2024

AI Insights

The case involves appeals by the Revenue against the order of the National Faceless Appeal Centre, Delhi, concerning the assessment years 2011-12 and 2014-15. The primary issue was the percentage of commission income assessed by the Assessing Officer, which was initially set at 1% but later reduced to 0.15% by the CIT (A). The Revenue challenged this reduction. The Tribunal, referencing previous decisions in the assessee's own cases for adjacent assessment years, upheld the CIT (A)'s decision to fix the commission at 0.15%. The Tribunal emphasized judicial discipline and consistency in similar cases.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126280 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Other Referred Cases: ITA No. 1330/KOL/2023, ITA No. 1331/KOL/2023, ITA No. 1034/KOL/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVEEN KISHORE
• Assessee Lawyers: AKKAL DUDHEWALA
• Keywords: Accommodation entries; Dismissed; National Faceless Appeal; A.Y. 2011-12; Withdrawn
• Section: 13

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JM AND SHRI RAJESH KUMAR, AM ITA Nos. 2072 & 2073/KOL/2024 (Assessment Years: 2024-15 & 2011-12) ITO, WARD-1(1), KOLKATA P-7, Chowringhee Square, Kolkata, West Bengal, 700069 Vs. SAANVI DEVELOPERS AND REALTORS PVT LTD 2nd floor, college street, Kolkata, west Bengal 700012 (Appellant) (Respondent) PAN No. AALCS4233R CO No. 36/KOL/2025 (Assessment Year: 2014-15) SAANVI DEVELOPERS AND REALTORS PVT LTD 2nd floor, college street, Kolkata, west Bengal 700012 Vs. ITO, WARD-1(1), KOLKATA P-7, Chowringhee Square, Kolkata, West Bengal, 700069 (Applicant) (Respondent) Assessee by : Shri Akkal Dudhewala, AR Revenue by : Shri Praveen Kishore Shri Sallong Yaden, DRs Date of hearing: 21.04.2025 Date of pronouncement : 21.04.2025 O R D E R Per Bench: ITA No. 2072 & 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 ITA No. 2072/KOL/2024 for A.Y. 2014-15. Page | 2 ITA Nos.2072 & 2073/KOL/2024 CO No. 36/KOL/2025 Saanvi Developers and Realtors Pvt. ltd; A.Y. 2011-12 & 2014-15 02. Shri Akkal Dudhewala represented on behalf of the assessee and Shri Praveen Kishore, CIT DR and Sallong yaden, Sr AR represented on behalf of the Revenue. 03. 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. 04. At the time of hearing, the ld. AR withdrew his cross objections. Consequently, the cross objections filed by the assessee stands dismissed as withdrawn. 05. In respect of appeals of the Revenue in ITA Nos. 2072 & 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. 06. 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 ITA No. 1330/KOL/2023 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 ITA No. 1331/KOL/2023 and 1034/KOL/2024 vide order dated Page | 3 ITA Nos.2072 & 2073/KOL/2024 CO No. 36/KOL/2025 Saanvi Developers and Realtors Pvt. ltd; A.Y. 2011-12 & 2014-15 13.02.2025, wherein the co-ordinate Bench of this Tribunal in assessee’s own case accepted the percentage at 0.15%. It was submitted that order of the ld. CIT (A) fixing 0.15%, may be upheld. 07. 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. 08. 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. Sd/- Sd/- (RAJESH KUMAR) (GEORGE MATHAN) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Kolkata, Dated: 21.04.2025 Sudip Sarkar, Sr.PS Page | 4 ITA Nos.2072 & 2073/KOL/2024 CO No. 36/KOL/2025 Saanvi Developers and Realtors Pvt. ltd; A.Y. 2011-12 & 2014-15 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "