CIT(A). Before the Ld. CIT(A), the assessee submitted that commission income estimated
by the AO on total turnover of cheque discounting business ... findings recorded by the Ld. CIT(A)
while estimating 1% commission on total cheque discounting business. Hence, we are
inclined to upheld the order
Similarly for cheque discounting, it was submitted that cash was given in lieu
of cheque for which the assessee charged commission in the range ... income from cheque
discounting for assessment years 2004-05 and 2005-06 . It was also
submitted that business of cheque discounting was discontinued
also been found that several firms,
individuals, cheque discounters, commission agents and
others based in New Delhi, Mumbai, Surat, Chandigarh,
Hyderabad and Ahmedabad have made
assessee made a provision towards discount and commission payable as customer discount or commission payable in an amount ... assessee-company had paid three types of commission and discounts viz.,
(a) OEM Commission (Original Equipment Manufacturers Commission) paid on the original equipment on invoices
cheque. The second accused has also executed a cheque discount form on September 1, 1992, itself and paid cheque discount commission charges ... cheque. The second accused has also executed a cheque discount form on September 1, 1992, itself and paid a cheque discount commission charges
then, only the income earned by
way of commission on such "cheque discounting" business can be subject to
tax in the hands ... assessee is engaged in the business of "cheque
discounting" in order to earn commission income. Therefore, in the instant
set of facts
2025
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original complainant was doing the business of Cheque Discount and
Commission Agent in the name and style of Shah Finance and the owner ... aspect of the applicant having engaged in the business
of cheque discount and commission agent in the name and style of Shah
Finance
asset as per the provisions of the Act.
4. The Ld. CIT(A) ought to have concluded that the initiation of
impugned assessment itself ... faceless manner
6. The Ld. CIT(A) erred in not considering that the appellant is a
commission, cheque discounting agent, thus, estimating at higher
rate
cheque discounting facility provided to its customers. The
firm receives cash from the beneficiary and gives cheque in lieu thereof.
The cheque is drawn ... activities of providing
accommodation entries under the garb of 'cheque discounting by giving
cheque in lieu of cash and vice-versa & hence
unaccounted income
generated by the assessee in the cheque discounting business and the
commission income as already earlier directed to be added. Therefore,
the addition ... explained that these entries were in respect of cheque
discounting, the corresponding commission entries was also not found
entered. Therefore, the AO had treated these
