ITAT upholds addition made on account of commission income earned  from accommodation entries [Read Order]

The  Income Tax Appellate Tribunal (ITAT)  Delhi bench  recently upheld the addition made on account of commission income earned from the accommodation entries.

 In this case the assessee  Ram Prakash Bhatia, doing the work of providing accommodation entries and bogus bills.These was recorded as a statement under Section 131(lA) of Income Tax Act when a survey carried out in the place of the assessee.

The Assessee during the proceedings before the AO stated that he used to provide bills to various persons against the goods supplied by some other traders. As per the Assessing Officer, the allegations that Sh. Ram Prakash Bhatia is an entry provider that has been clearly established by his statement.Further Ao noticed that  the details of the assessee's undisclosed bank account.

The Assessing Officer calculated the total commission on the credit entries for these four accounts other than the cash credits and the commission is computed at Rs. 32,40 ,621/-. The Assessing Officer has added this amount of commission of Rs. 32 ,40,621/- to the income o f the assessee.

In such a situation the   Aggrieved, the assessee filed appeal before the  CIT(A). Who  held that the Assessing Officer did not commit any error in computing the commission income on credit entries in the bank and adding a commission income of R s. 32 ,40,621/-. Subsequently the Assesee filed a second appeal before the tribunal.

After reviewing the facts and circumstances  the two-member bench Of Dr. B. R. R. Kumar, (Accountant member) and Challa Nagendra Prasad, (Judicial Member) upheld that the addition was made on account of commission income earned from the accommodation entries.

Amol Sinha, counsel appeared for assessee and P.N Barnwal, counsel appeared for revenue.

To Read the full text of the Order CLICK HERE

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