9911796707
TMI Blog2019 (9) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... . That the CIT(A) erred in upholding commission income of Rs. 37,35,000/- calculated by the Assessing Officer at 2.25% on the total amount of Rs. 16.60 crores considered as accommodation entries without appreciating that amount of Rs. 10.95 crores had been paid for purchase of shares of Prakash Industries and amount of Rs. 5.45 crores represents transfer to other group companies and payment to outside parties was only of Rs. 20 lacs as loan. 2. That the CIT(A) erred in not accepting payment of Rs. 10.95 crores made for purchase of shares of Prakash Industries as genuine without appreciating that shares had also been sold during the year for total consideration of Rs. 10,97,47,565/- and the appellant company had submitted before him neces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried out by the Investigation Wing of the Income-tax on 15.09.2008, it was found that the assessee company had transferred funds and had given accommodation entries to parties connected with Tarun Goyal group and outsiders through its account no.01792090007427 and 03142340000152 maintained with Kotak Mahindra Bank and HDFC Bank respectively and total funds transferred to the outside parties during the year under assessment were Rs. 16.60 crores. Assessing Officer (AO) reached the conclusion that the assessee company has been providing accommodation entries to the beneficiaries for earning commission income and following the AY 2009-10 estimated commission @ 2.25% for providing accommodation entries which was adopted on the basis of seized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ld. CIT(A) is concerned, this issue has already been decided by the coordinate Bench of the Tribunal in the Group cases of Tarun Goyal vide order dated 23.01.2019 passed in ITA No.6507/Del/2015 & Ors., thereby AO has been directed to adopt the rate of commission @ 0.50% or 50 paise and computed the profit accordingly by returning following findings :- "14. The ld. counsel for 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%. 15. As mentioned elsewhere, in such illegal activities, there cannot be any precedence and the rate varies from facts of each case. 16. To put an end to the litigation and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entries have been duly explained by the assessee and inter-group entries were to be excluded. Perusal of remand order dated 18.10.2013 passed by the Tribunal was required to exclude the inter-group entries in the bank account in order to calculate the commission income. So, the AO is directed to exclude all inter-group entries in the bank account as per directions of the Tribunal and then calculate the commission income @ 0.50%. Consequently, this issue in the case of Bhawani Portfolio Pvt. Ltd. and Geefcee Finance Ltd. is determined in favour of assessee for statistical purposes." 7. So, we are of the considered view that the first issue as to what should be the rate of commission on amounts provided as accommodation entries is requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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