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2019 (1) TMI 1266 - ITAT DELHIComputations of profit - reasonable rate of profit/commission in such clandestine activities - Notings found in the loose sheets - reliance on statement recorded under oath u/s 132(4) - Held that:- As decided in CBI Vs. V.S. Shukla [1998 (3) TMI 675 - SUPREME COURT] Notings found in the loose sheets would not do any good to the Revenue. The assessee has claimed 25 paise or 0.25% on the strength of the statement of kingpin Shri Tarun Goyal, who in his statement recorded under oath u/s 132(4) of the Income tax Act, 1961 has categorically stated that the rate of commission charged on accommodation entries provided through various companies was 0.25%. The statement of Shri Tarun Goyal recorded u/s 132(4) of the Act can be a good piece of evidence in the case of Shri Tarun Goyal only. The assessee also relied heavily on various decisions of the co-ordinate bench wherein the Tribunal has adopted rate ranging from 0.15 paise to 0.50 paise i.e 0.15% to 0.50%. In such illegal activities, there cannot be any precedence and the rate varies from facts of each case. To put an end to the litigation and in the interest of justice and fair play, in our considered opinion, 0.50 paise or 0.50% should be taken as the reasonable rate of profit/commission in such clandestine activities. We, accordingly, direct the Assessing Officers to adopt 0.50% or 0.50 paise and compute the profit accordingly. We are of the opinion that there cannot be any profit element in intra-group transactions. Direct the AO to consider the transactions with outside parties only and then compute the profit. Thus, the common ground in the case of the appellants is partly allowed.
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