A search operation was conducted at the business premises of the Assessee. The assessee made bogus purchases and sales through a broker and paid cash commission at a certain rate on the total amount of these transactions. The Assessing Officer (AO) treated the cash commission paid as unexplained expenditure under Section 69C and made additions to the income of the assessee as according to him, the assessee did not provide proof of the cash commission rate claimed. The assessee contended that it had already disclosed and offered to tax the gross profit on bogus sales, which was accounted for in its books. The commission payment to the broker was covered by the quantum of gross profit already offered to tax. The assessee argued that making a separate addition for the commission would result in double taxation. The Hon’ble Tribunal held that the gross profit disclosed by the assessee covered the commission for procuring bogus purchases and sales. That since the commission was covered by the gross profit already offered to tax, no separate addition should be made. The Hon’ble Tribunal thereby directed deletion of the adjustment made, allowing the ground of appeal in favor of the assessee.  (AY 2013-14 to 2018-19)