The ACIT, Central Circle-1(2), Ahmedabad V. M/s. L.R. Construction, Baroda

ITSSA 100/AHD/2011

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 0548 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 02-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 14-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Keywords: Accommodation entries

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .# ## #. . . . % % % %, , , , &' ( & ' &' ( & ' &' ( & ' &' ( & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND N.S. SAINI, ACCOUNTANT MEMBER) IT(SS)A NO.100/AHD/2011 [ASSTT.YEAR : 2004-2005] ACIT, CENT.CIR.1(2) AHMEDABAD. /VS. M/S.L.R. CONSTRUCTION 958, SHIVAM NAGAR AMBICA NAGAR GOTRI ROAD, VADODARA. PAN : AABPL 9316 K ( (( ( *+ *+ *+ *+ / APPELLANT) ( (( ( ,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ( . / & / REVENUE BY : SHRI B.L.YADAV, SR.DR 12 . / & / ASSESSEE BY : SHRI ASEEM THAKKAR 3 . 24' / DATE OF HEARING : 17 TH DECEMBER, 2014 567 . 24' / DATE OF PRONOUNCEMENT : 02-02-2015 &8 / O R D E R PER SHRI G.C.GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSTT.YEARS 2004-05 IS DIRECTED AGA INST THE ORDER OF THE CIT(A)-I, AHMEDABAD. 2. THE ONLY GROUND OF THE APPEAL OF THE REVENUE IS AS UNDER: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN GIVING RELIEF OF 95% ON ADDITION OF RS.6,07,18,300/- I.E. RS.5,76,82,385 /- MADE ON ACCOUNT OF UNDISCLOSED INCOME. IT(SS)A NO.100/AHD/2011 -2- 3. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AO . THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN THE GR OUND OF THE APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH T HE DECISION OF AHMEDABAD TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSTT.YEAR 2004-05 IN ASSESSEES APPEAL IN IT(SS)A.NO.178 DATED 8.8.2014 WHEREIN THE ASSESS EES APPEAL HAS BEEN PARTLY ALLOWED BY THE TRIBUNAL AND THE TRIBUNAL HAS DIRECTED THE AO TO ESTIMATE THE COMMISSION INCOME OF THE ASSESSEE AT 2.5% OF TH E TOTAL AMOUNT OF RECEIPT RECEIVED BY THE ASSESSEE. HE SUBMITTED THAT THE TR IBUNAL IN THE ASSESSEES OWN CASE FOR ASSTT.YEAR 2004-05 VIDE ORDER DATED 8.8.20 14 (SUPRA) HAS FOLLOWED THE DECISION OF THE AHMEDABAD TRIBUNAL IN THE LEAD CASE OF M/S.DEVI DURGA CONSTRUCTION VS. ACIT IN IT(SS)A.NO.181 TO 187/AHD/ 2011 DATED 11.7.2014 WHEREIN IN SIMILAR FACTS, THE AO WAS DIRECTED TO ES TIMATE THE COMMISSION INCOME OF THE ASSESSEE AT THE RATE OF 2.5% OF THE T OTAL BILL AMOUNT, AS AGAINST THE RATE OF 5% APPLIED BY THE CIT(A). THE LEARNED COUN SEL HAS FILED COPIES OF AHMEDABAD TRIBUNALS ORDERS BEFORE THE TRIBUNAL. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS, AND HAVE P ERUSED THE ORDERS OF THE AO AND THE CIT(A), AND ALSO COPIES OF THE ORDER OF THE AHMEDABAD TRIBUNAL IN THE CASE OF ASSESSEE FOR THE ASSTT.YEAR 2004-05, AN D ALSO IN THE CASE OF M/S.DEVI DURGA CONSTRUCTION VS. ACIT (SUPRA). WE FIND THAT IN THIS CASE, THE AO HAS MADE ADDITION OF TOTAL UNDISCLOSED BILL AMOUNT, AS INCOME IN THE HANDS OF THE ASSESSEE. THE CIT(A) IN HIS APPELLATE HAS RESTRICT ED THE ADDITION AT 5% OF THE TOTAL BILL AMOUNT AS COMMISSION INCOME EARNED BY TH E ASSESSEE ON ESTIMATE AND HAS DIRECTED THE DELETION OF BALANCE ADDITION. THE CIT(A) HAS HELD THAT ROLE OF THE ASSESSEE WAS THAT OF ONLY GIVING ACCOMMODATION ENTRIES, AND THEREFORE, ONLY COMMISSION INCOME SHOULD BE ADDED BY WAY OF ESTIMAT E. WE FIND THAT THE AHMEDABAD TRIBUNAL IN ASSESSEES APPEAL FOR THE ASS TT.YEAR 2004-05 VIDE ORDER DATED 8.8.2014(SUPRA) HAS PARTLY ALLOWED THE GROUND S OF THE APPEAL OF THE ASSESSEE AND HAS DIRECTED THE AO TO ESTIMATE THE CO MMISSION INCOME AT 2.5% OF THE TOTAL AMOUNT OF UNDISCLOSED RECEIPT OF THE ASSE SSEE AND THE GROUND OF THE IT(SS)A NO.100/AHD/2011 -3- ASSESSEE WAS PARTLY ALLOWED. THE TRIBUNAL IN THIS CASE OF THE ASSESSEE HAS FOLLOWED THE DECISION OF THE AHMEDABAD TRIBUNAL IN THE GROUP CASE OF THE ASSESSEE, M/S.DEVI DURGA CONSTRUCTION VS. ACIT DATE D 11.7.2014 (SUPRA) WHEREIN THE TRIBUNAL HAS DIRECTED THE AO TO ESTIMAT E COMMISSION INCOME OF THE ASSESSEE AT RS.2.5% OF THE TOTAL AMOUNT OF RECEIPT OF THE ASSESSEE. IN THESE FACTS OF THE CASE, AND SINCE THE ISSUE OF ESTIMATION OF C OMMISSION INCOME HAS ALREADY BEEN DECIDED BY THE AHMEDABAD TRIBUNAL IN ASSESSEE S OWN CASE FOR THE ASSTT.YEAR 2004-05 IN THE ASSESSEES APPEAL VIDE OR DER DATED 8.8.2014 (SUPRA) AND HAS DIRECTED THE AO TO ESTIMATE THE COMMISSION INCOME AT 2.5% OF THE TOTAL AMOUNT OF UNDISCLOSED RECEIPTS, WE HOLD THAT THERE IS NO MERIT IN THE GROUND OF THE APPEAL OF THE REVENUE, AND THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE, AND ACCORDINGLY, THE GROUND OF THE APPEAL OF THE RE VENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## # . .. . # ## # . . . . % % % % /N.S.SAINI) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD