Chintan Niketan Bhandari, Ahmedabad V. The DCIT, Central Circle-1(4), Ahmedabad

MA 14/AHD/2023

AI Insights

The case involves Chintan Niketan Bhandari, the appellant, who filed miscellaneous applications concerning a common order for the assessment years 2011-12 to 2017-18. The applications were in response to post-search assessments conducted by the Assessing Officer. The primary issues were the applicability of a relief concerning secret commissions and the method of calculating these commissions. The ITAT had previously directed that 50% of the secret commissions should be allowed, but it was unclear if this applied to all relevant years. Additionally, the assessee sought clarification on calculating the secret commission based on gross commission income, which was not claimed in the original return of income.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131518 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: D
• Next Hearing Date: 16-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 12-01-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member Ch in tan Niketan Bh and ari, B-101 , Scarlet Heig hts, Anandnagar Cross Road , Satellite, Ah medabad -3 80015 PAN: AF VPB7221E (Appellant) Vs Dy . CIT, Central Circle-1(4), Ah med abad (Resp ondent) Asses see b y : Shri B. R. Popat, A. R. Revenue by : Shri M. Anand Kumar, Sr. D. R. Date of hearing : 17-02 -2 023 Date of pronouncement : 27-04 -2 023 आदेश/ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- These Miscellaneous Applications have been filed in respect of common order in the case of the assessee for assessment years 2011-12 to assessment years 2017-18 vide order dated 29 th Nov, 2022. 2. All the appeals are related to post search assessments carried out simultaneously by the Assessing Officer in the order passed by ITAT dated M.A. Nos. 8, 9,10,11,12,13, & 14/Ahd/2023 (In ITA Nos. 495 to 500 &1604 /Ahd/2019) Assessment Years 2011-12 to 2017-18 M.A Nos. 8 to 14/Ahd/2023 (In 495 to 500 & 1604/Ahd/2019) A.Y. 2011-12 to 2017-18 Page No. Chintan Niketan Bhandari vs. DCIT 2 29 th Nov, 2022, assessment year 2017-18 was taken as the lead year and while adjudicating the first ground of appeal for assessment year 2017-18 at para 8.3 of the order, the ITAT directed that 50% of such secret commission should be allowed to the assessee in the interest of justice. The grievance of the assessee by way of the present application is that there is no express mention in the order whether the relief in respect of secret commission as mentioned at para 8.3 of the order of ITAT was applicable to assessment year 2017-18 or whether the same would apply to other assessment years itself. 3. We note the above contentions of the assessee and it is clarified that there was an omission in the order of ITAT wherein the ITAT inadvertently omitted to mention that the relief in respect of secret commission would apply to all the years under consideration. Accordingly, the order of the ITAT is modified to the extent that the relief with respect of secret commission as mentioned at para 8.3 of the order dated 29 th Nov, 2022 would apply to all the years under consideration before the ITAT. Accordingly, the issue no. 1 of the MA filed by the assessee is allowed. 4. The second issue which has been raised by the assessee is that it is seeking a specific clarification that secret commission has to be calculated with reference to the gross commission income which has been directed to be estimated @ 0.25% of the total deposits made in the bank accounts owned/operated by the assessee. However, we observe that this contention of the assessee is clearly beyond the scope of miscellaneous application as it is observed that this secret commission was not claimed by the assessee in M.A Nos. 8 to 14/Ahd/2023 (In 495 to 500 & 1604/Ahd/2019) A.Y. 2011-12 to 2017-18 Page No. Chintan Niketan Bhandari vs. DCIT 3 the return of income. Accordingly, therefore, the claim of the assessee that a direction may be given that 50% of such secret commission must be calculated with reference to the gross commission income is incorrect on the facts of this case. The request made vide issue no. 2 of the miscellaneous application is clearly contrary to the facts of the case since even before the Department the assessee could not produce any records of parties to whom such secret commission was paid. Therefore, clearly it is an unacceptable proposition that 50% of the gross commission income should be taken as the reference point for computation of secret commission. Accordingly, the issue no. 2 of the miscellaneous application is dismissed. 5. In the result, the miscellaneous applications for assessment years 2011-12 to 2017-18 filed by the assessee are partly allowed. Order pronounced in the open court on 27-04-2023 Sd/- Sd/- (WASEEM AHMED) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 27/04/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद