commission income at the same rate shall be assessed in the hands of assessee,under the similar facts and circumstances emanating out of the identical search

Last updated: 23 January 2021

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The Income Tax Appellate Tribunal (ITAT) in Mumbai has ruled that commission income should be assessed at the same rate for an assessee, provided the facts and circumstances are identical. This decision consolidates appeals related to assessment years 2006-07 to 2009-10, confirming a consistent tax treatment for such income.

Court :
ITAT Mumbai

Brief :
These appeals in ITA No.7105/Mum/2017, 7106/Mum/2017, 7107/Mum/2017 & 7108/Mum/2017 for A.Y.2009-10, 2006-07, 2007-08 & 2008-09 arise out of the order by the ld. Commissioner of Income Tax (Appeals)-50, Mumbai in appeal Nos.CIT(A)-50/IT-73/2016-17-AY 2006-07, CIT(A)-50/IT-72/2016-17-AY 2007-08, CIT(A)-50/IT-71/2016-17-AY 2008-09 & CIT(A)-50/IT-70/2016-17-AY 2009-10 respectively dated 25/04/2016 (ld. CIT(A) in short) against the order of assessment passed u/s.144 r.w.s.263 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 21/03/2016 by the ld. Dy. Commissioner of Income Tax Central Circle-8(1), Mumbai (hereinafter referred to as ld. AO).

Citation :
ITA 7105/MUM/2017

IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT),
‘H‘ BENCH MUMBAI

BEFORE SHRI M.BALAGANESH, AM
&
SHRI PAVAN KUMAR GADALE, JM

ITA No.7105/Mum/2017
(Assessment Year :2009-10)
ITA No.7106/Mum/2017
(Assessment Year :2006-07)
ITA No.7107/Mum/2017
(Assessment Year :2007-08)
&
ITA No.7108/Mum/2017
(Assessment Year :2008-09)

M/s. Khyati Sales Agency Pvt. Ltd., B-11, Dahisar Gaurav H. Joshi Marg Dahisar (E) Mumbai – 400 068
PAN/GIR No. AACCK1949B
(Appellant)

Vs.

Dy. Commissioner of Income Tax- 8(1) Aayakar Bhavan M.K.Road Mumbai- 400 020
(Respondent)

Assessee by Shri Ajay Singh
Revenue byShri Gurbinder Singh

Date of Hearing 06/01/2021
Date of Pronouncement 13/01/2021

O R D E R

PER M. BALAGANESH (A.M): ITA No.7105/Mum/2017 (A.Y.2009-10)

These appeals in ITA No.7105/Mum/2017, 7106/Mum/2017, 7107/Mum/2017 & 7108/Mum/2017 for A.Y.2009-10, 2006-07, 2007-08 &
2008-09 arise out of the order by the ld. Commissioner of Income Tax (Appeals)-50, Mumbai in appeal Nos.CIT(A)-50/IT-73/2016-17-AY 2006-07, CIT(A)-50/IT-72/2016-17-AY 2007-08, CIT(A)-50/IT-71/2016-17-AY 2008-09 & CIT(A)-50/IT-70/2016-17-AY 2009-10 respectively dated 25/04/2016 (ld. CIT(A) in short) against the order of assessment passed u/s.144 r.w.s.263 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 21/03/2016 by the ld. Dy. Commissioner of Income Tax Central Circle-8(1), Mumbai (hereinafter referred to as ld. AO).

Identical issues are involved in all these appeals and hence, they are taken up together and disposed off by this common order for the sake of convenience.

2. At the outset we find that all these appeals are recalled matters vide M.A Order in MA Nos.22-25/Mum/2020 dated 24/07/2020 wherein it was held as under:-

To know more in details find the attachment file

FAQ :

The ITAT ruled that commission income should be taxed at the same rate for the assessee when the facts and circumstances are similar.

The ruling covers the assessment years 2006-07, 2007-08, 2008-09, and 2009-10.

The ruling implies that the tax treatment should be consistent if the commission income arises from similar circumstances, often stemming from an identical search or investigation.

The appeal was between M/s. Khyati Sales Agency Pvt. Ltd. (Appellant) and the Dy. Commissioner of Income Tax- 8(1), Mumbai (Respondent).