TMI Blog2015 (11) TMI 1693X X X X Extracts X X X X X X X X Extracts X X X X ..... with the commission earned on providing accommodation entries. We, therefore, of the view that since the assessee itself has declared the commission on turnover at 0.15% which is more than the percentage considered to be reasonable the same should be accepted. We, accordingly, accept the commission declared by the assessee and set aside the order of the CIT (A) in this regard - Decided against revenue Allowabaility of expenses - expenses claimed by the assessee in its profit and loss account disallowed on ad hoc basis - Held that:- Since, the issue raised herein has already been decided by the Tribunal and nothing has been brought on record by the ld. DR to contradict the findings of the Tribunal, we therefore, direct the AO to follow t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the commission income at 0.15% without considering that the material found during the course of search clearly established that the net commission charged by the assessee group of companies varied between 1.5% and 3.6% and the fact of ITAT decision in the case of M/s Mihir Agencies Pvt ltd for AY-2002-03 (ITA No.4912/M/2005) as relied upon by the CIT(A) were clearly distinguishable . 3. At the time of hearing, it was stated by the ld. Counsel appearing for the assessee that this issue has already been decided by the coordinate Bench of Tribunal in assessee s own case in M/s Gold Star Finvest P Ltd V/s ITO in ITA No.4625/Mum/2005 (AY-2002-03) and ITA No.5000/Mum/2005 dated 28.3.2008. It was further submitted that this order has been foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgments what has been stated is that an average percentage of commission is between 0.15% to 0.25%. In the case of Palresha Co. and Kiran Co (surpa), the Tribunal has considered reasonableness of percentage of commission to be earned on turnover was at 0.1%. The assessee himself has offered the percentage of commission at 0.15%, which is more than the percentage of commission considered to be reasonable by the Tribunal in the case of Palresha Co and Kiran Co (supra) in similar type of transactions. The theory of Assessing Officer to treat the entire deposit as unexplained cash credits, cannot be accepted in the light of assessment orders in the case of beneficiaries and also in the light of the fact that assessee is only conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in confirming the order of AO; 2. On the facts and in the circumstances of the ld.CIT(A) has erred in law and in facts in confirming the order of AO without complying with the principles of natural justice; 3. The ld. CIT(A) has erred in law and in facts in determining the income of the appellant at ₹ 1,77,530/-; 4. The ld.CIT(A) has erred in law and in facts in granting part relief of ₹ 62,561/- on account of expenses amounting to ₹ 3,12,807/-; 5. The ld.CIT(A) has erred in law and in facts in observing that the Hon ble Tribunal has directed to assess the total income of the appellant %0.15%. 6. The ld. CIT(A) has erred in law and in facts in confirming the levy of interest u/s 234B and 234C of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit and loss account were disallowed on ad hoc basis. Therefore, he allowed 20% of the above expenses in-all the years and in this way the appeals of the assessee were allowed in part. Now, the assessee is in appeals here before the Tribunal. 10. After considering the submission, I found that the disallowance on the total expenses at the rate of 80% is on higher side. Hence, I am of the view that at least 50% of the disallowance should be allowed. Accordingly I direct the AO to allow 50% of expenses against 80% restricted by CIT(A) in all these cases. I order accordingly 13. Since, the issue raised herein has already been decided by the Tribunal and nothing has been brought on record by the ld. DR to contradict the findings of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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