Bhushan Ashokkumar Chechani, Aurangabad V. Income-Tax Officer, Ward -1, Jalna

ITA 77/PUN/2023

AI Insights

The case involves Bhushan Ashokkumar Chechani, who appealed against the order of the CIT(A) regarding the taxability of commission income and interest income for the assessment year 2010-11. The Assessing Officer had included the entire commission income of Rs.8,51,670/- in the assessee's total income without allowing any deductions for expenses, as the assessee did not file a return or participate in the proceedings. The CIT(A) upheld this decision. The Tribunal, however, allowed a deduction of 40% of the gross commission income towards expenses, based on comparable cases, and confirmed the taxability of the interest income of Rs.53,039/- from Poonam Oil Products, as no expenses were claimed against it.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124165 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 14-03-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 19-01-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.77/PUN/2023 नधा रण वष / Assessment Year : 2010-11 Bhushan Ashokkumar Chechani, Plot No.B-56, Sector C-N-4, CIDCO, Aurangabad 431 001 Maharashtra PAN : AIZPC3199D Vs. ITO, Ward-1, Jalna Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order dated 30-11-2022 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2010-11. 2. The first issue raised in this appeal is against the taxability of commission income on entirety. 3. The facts apropos it are that the assessee did not file his return of income for the year under consideration. The Assessing Officer (AO) obtained information that the assessee received commission of Rs.8,51,670/- from “The Parel Chemists”, Near KEM Hospital, Assessee by None Revenue by Shri Mahesh Jasnani Date of hearing 15-03-2023 Date of pronouncement 15-03-2023 ITA No. 77/PUN/2023 Bhushan Ashokkumar Chechani 2 Mumbai, which was credited to the assessee’s account after deduction of tax at source u/s.194H. In the absence of the assessee participating in the proceedings u/s.147, the AO included the gross amount of commission in the total income. The ld. CIT(A) echoed the assessment order on this point, against which the assessee has approached the Tribunal. 4. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of the assessee despite notice. However, the assessee has filed written submissions and requested for disposal of the appeal based on such submissions only. As such, I am proceeding to dispose of the appeal ex parte qua the assessee but on the strength of the written submissions. 5. It is found from the assessment order that the assessee admittedly earned commission of Rs.8,51,670/- which was not offered for taxation. The AO made the addition of entire sum without allowing deduction for any expenses incurred. 6. Assessment u/s.144 of the Act contemplates an assessment to the best of the AO’s judgment based on whatever relevant material is available and attending circumstances. It does not refer to high pitched illogical additions de hors any rationale or substance. Here is a case in which the AO, while framing the assessment u/s 144 of the Act, has ITA No. 77/PUN/2023 Bhushan Ashokkumar Chechani 3 taxed the gross receipts instead of income component, which defies the fundamental tenet of taxation. 7. The assessee, in written submissions, has referred to six different assessees with respective PANs giving total amount of commission receipts and income assessed. Such income assessed varies from 43.14% to 48.64%. The request of the assessee is that a reasonable deduction should be allowed towards expenses incurred. Considering such other comparable cases, whose factual panorama has not been controverted on behalf of the Revenue, I am of the considered opinion that it would be just and fair if the deduction @40% of gross commission is allowed towards expenses and remaining 60% is added to the total income. I order accordingly. 8. The AO made another addition of Rs.53,039/- towards interest earned from Poonam Oil Products, Jalna, which was received by the assessee but not offered for taxation. The ld.CIT(A) affirmed the addition. 9. Having regard to the facts of the case, it is seen that the amount in question is interest income, whose receipt has not been denied. There is no reference, in the written submissions, to the incurring of any expenses for earning such interest income. I, therefore, confirm the taxability of Rs.53,039/-. ITA No. 77/PUN/2023 Bhushan Ashokkumar Chechani 4 10. In the result, the appeal is partly allowed. Order pronounced in the Open Court on 15 th March, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 15 th March, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 15-03-2023 Sr.PS 2. Draft placed before author 15-03-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *