9911796707
TMI Blog2010 (7) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial questions of law:- (i) Whether in facts and circumstances of the case, the action of the authorities below in rejecting the claim of the assessee without their being any material evidence to rebut the claim of the assessee/appellant is legally sustainable in the eyes of law? (ii) Whether in facts and circumstances of the case, the action of the authorities below in ignoring the books of accounts of the assessee/appellant and to arbitrarily arrive at the rate of commission income is legally sustainable in the eyes of law? (iii) Whether in facts and circumstances of the case, the action of the authorities below, impugned orders Annexures A-1 and A-3 are legally sustainable in the eyes of law?" 2. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... survey, after explaining the modus operandi of carrying on the business of providing share profits to various persons, in reply to Q. No.7, the director admitted that commission earned on issuing share profit bills against cash receipt varies from 0.005% to 0.015%. During the assessment proceedings, the explanation was filed by the assessee. As per the said explanation and also the statement of directors recorded during survey, the modus operandi adopted by the assessee was that it was receiving cash/ cheques from various parties to whom the shares profits were being given. The assessee claims that there were two types of transactions on account of share profits; on being short term capital gains. The assessee claims that on receipts of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worked the income at Rs. 66,62,980/-. 17. The issue to be addressed by us is limited to the rate of commission/service charges charged by the assessee and the break-up of the total turnover in the turnover relating to the long term transactions and short term transaction. The claim of the assessee that 90% of the total turnover relates to short term transactions and balance is long term transactions cannot be accepted in the absence of any books of account or any other evidence furnished by the assessee to justify this claim. The director of the assessee company had also not talked about the said bifurcation. In his statement recorded during survey, the director of assessee Company stated that bogus share profits were issued and hence surr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rate of commission charges for giving the share profits. In the facts and circumstances of the case, rate of 0.75% be applied to work the income of the assessee. The Assessing Officer is directed to recompute the income of the assessee accordingly. The ground of appeal No. 1 raised by the Revenue is partly allowed." 4. We have heard learned counsel for the assessee who submitted that the addition was without any basis and books of account of the assessee were wrongly ignored. 5. We are unable to accept the submission. The Tribunal had duly considered the statement of the Director. The assessee was adopting modus operandi of receiving cash through cheques from various parties and giving them share profits. Claim of the assessee that i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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