TMI Blog2016 (12) TMI 1546X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee but according to us the assessee is unable to prove the sales as he is unable to prove the beneficiaries. First of all, the assessee has to prove the beneficiaries to whom these accommodation entries are given and in case he is able to provide information in relation to beneficiaries and beneficiaries admit that they have paid only net commission, only then the commission is added otherwise the entire deposits to be added in the hands of the assessee. But, before that the compete verification of facts are required because none of the authorities below have brought on record the facts of the case. Even otherwise, the assessee has to provide details of beneficiaries so that the AO can verify and finalize the assessment as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During search, it was noticed that the assessee was engaged in the business of providing accommodation entries. During the course of search, certain incriminating material pertaining to the assessee was found and seized. Accordingly, notice u/s. 153C of the Act was issued and assessment u/s. 143(3) r. w. s 153C of the Act was completed on 24/11/08 at total income of Rs. NIL. Later, on the basis of search carried out, the AO was of the opinion that income chargeable to tax had escaped assessment and a notice u/s 148 dated 31/03/10 was issued and reasons for issuing notice u/s 148 of the Act were communicated. 4. During assessment proceedings, the AO observed that the assessee was one of the companies floated by Shri Mukesh Choksi and his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that identical issues were raised in the case of Mukesh Choksi and his various corporate entities in earlier assessment years wherein the entire deposits in the bank accounts were assessed to tax. The said issues were challenged before the Hon'ble Tribunal wherein the Hon'ble Tribunal, Mumbai took a view that since these concerns were involved in providing accommodation entries only, a percentage of commission should be assessed in their hands and not the entire deposit amount. It has further been stated that accordingly, the Hon'ble Mumbai Tribunal held that only 0.15% of the total deposits are to be treated as income from the Commission in the hands of the respective entities.Ld.AR relied on the following orders of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 109 enough evidences have been found, which establishes that the assessee group is earning commission 1.5%to3. 6% on different kind of entries provided. It is therefore become clear that the judgment of the Hon'ble Tribunal, on which, the assessee is relying heavily, was given on different evidences and on facts and the same cannot be followed in this case. 28. The finding given by the Hon'ble ITAT in one of the group companies of Mr. Mukesh Choksi i.e. M/s. Goldstar Finvest Pvt. Ltd for A. Y. 2002-03with regard to the chargeability of commission income @ 0.15% relates to the assessee s business activities during the period, when survey u/s. 133Awas carried out. However, in the search action conclusive evidence has been foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et commission @ of 2% maybe estimated by the Ld. AO and the balance addition may be deleted. Accordingly Ground nos. 5 6 are partly allowed. 6. We have heard rival contentions and gone through the facts and circumstances of the case. We find from the order of the AO that the assessee is unable to prove the amounts credited in the bank A/c in cash as well as other credit entries and the persons to whom accommodation bills were provided. The assessee could not provide the details of beneficiaries it means that no sale has been affected by the assessee. The CIT(A) has totally gone on wrong premise by treating the unaccounted sale on which net commission of 2% is to be charged as profit of the assessee but according to us the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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