Nakshatra Business Pvt. Ltd, Mumbai V. DCIT, CC 27, New Delhi

ITA 3363/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7082 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 20-05-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 24-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. G. JOSEPH GANGTE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member, Sh. Sudhir Kumar, Judicial Member ITA No. 3364/Del/2023 : Asstt. Year: 2012-13 ITA No. 3363/Del/2023 : Asstt. Year: 2013-14 ITA No. 3362/Del/2023 : Asstt. Year: 2014-15 Nakshatra Business Pvt. Ltd., Office No. 27, Kamla BMC Market, Padma Nagar Road, Chikuwadi, Borivali West, Mumbai-400092 Vs DCIT, Central Circle-27, New Delhi-110055 (APPELLANT) (RESPONDENT) PAN No. AABCH4279G Assessee by : Sh. Arvind Kumar, Adv. Revenue by : Sh. M. G. Joseph Gangte, CIT-DR Date of Hearing: 21.05.2024 Date of Pronouncement: 24.05.2024 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeals have been filed by the assessee against the orders of ld. CIT(A)-29, New Delhi dated 26.09.2023. 2. Since, the issue involved in all these appeals are similar, they were heard together and being adjudicated by a common order. In ITA No. 3362/Del/2023, following grounds have been raised by the assessee: “i. Th e l ea rn ed C om m is si on er of in co m e Ta x ( App eal) ha s erred in n ot all ow in g th e app el l an t comp an y ’s ap peal for d is app rov i ng th e l ea rn ed A s s ess i ng of fi c er’s v i ew of rej ect i ng t h e Bo ok s of Ac c ou nt s and In c om e of app el l ant b y in v oki ng th e p rovi si on of s ect i on 145 ( 3) of t h e i n com e ta x A ct , 196 . ITA Nos. 3362, 3363 & 3364/Del/2023 Nakshatra Business Pvt. Ltd. 2 ii . Th e l earn ed Com m is si on er of In c om e Tax (A p p eal ) h as ag ain erred i n u ph ol d i ng th e a ct i on of l ea r ned a ss essi ng of fi c er of tr ea ti ng al l t he b usin es s ac ti v it i es as a c c om m od ati on en t r y wit h out a p p reciat in g th e su b m i s si on / d ocu m en ta ry evi den c e pr ovid ed t o prov e t h e g enu in en es s of all th e t ran sa ct ion of In co m e, Exp en s es, B us in es s L oss es , Cap i t al Gain / Los s , pu rcha se, sal es, l oan s and adv an c es an d In v est m en t s et c sub mi tt ed b y ap p el l an t c om pan y. ii i. Th e L ea rn ed C om mi ssi on er of In c ome Ta x ( Ap p ea l) h a s agai n erred i n u ph ol d i ng th e add it i on ma de by t h e l ea rn ed Dy . Comm is si on er of In c om e Ta x b y est i m at in g ad di ti on at th e rat e of all eg ed c omm i ss ion in c om e @ 3% f or Loa n s & A d va nc es, Sh a re A p pl i ca t i on m on ey ( In v est m en t s) and Pu rch a s e an d S al es ( Trad in g Ac t iv it i es) mad e d u rin g th e y ear. ” 3. Heard the arguments of both the parties and perused the material available on record. 4. The undisputed facts as accepted by both the parties are that an addition @ 3% as the commission received on purchase & sale has been added in the hands of the company. The company is conduit entity which was used for facilitating accommodation entries. It was submitted that the said commission was also added to the income of the operator Sh. Praveen Jain for Assessment Years in question on substantive basis and the Co-ordinate Bench of ITAT has confirmed the addition made. Hence, we hold that the addition of the commission made in the assessee company is akin to the taxation of the commission income earned twice, once in the hands of the assessee once in the hands of the operator. Since, the addition has already been confirmed in the hands of operator Sh. Praveen Jain, we hold that the addition made in the hands of the assessee is liable to be deleted. ITA Nos. 3362, 3363 & 3364/Del/2023 Nakshatra Business Pvt. Ltd. 3 5. In the result, the appeals of the assessee are allowed. Order Pronounced in the Open Court on 24/05/2024. Sd/- Sd/- (Sudhir Kumar) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 24/05/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR