Bimal Dilip Samani Vs ITO (ITAT Mumbai)
The Mumbai Income Tax Appellate Tribunal (ITAT) partly allowed the assessee’s appeal against the order of the CIT(A)/NFAC for AY 2012-13 relating to reassessment proceedings and addition of alleged commission income based on Form 26AS entries.
The assessee, proprietor of Prisha Enterprises, was engaged in distribution of SIM cards and recharge coupons for Unitech Wireless (Tamilnadu) Private Limited. No return of income had originally been filed for AY 2012-13. Based on information regarding cash deposits of ₹23.29 lakh and commission transactions reflected in Form 26AS, the Assessing Officer reopened the assessment under Sections 147 and 148 after obtaining approval from the Principal CIT.
In response to notice under Section 148, the assessee filed a return declaring income of ₹7.38 lakh. The Assessing Officer noted credits aggregating to ₹3.09 crore in the bank account and commission entries of ₹99.75 lakh in Form 26AS. The assessee explained that he acted merely as a distributor and collection agent for Unitech Wireless, collecting payments from retailers for recharge coupons and SIM cards and remitting them to the telecom company. The assessee contended that his actual commission income was ₹21.15 lakh, including activation commissions and incentives, and that the amounts deposited in bank accounts largely represented collections remitted onward to Unitech Wireless.
