TMI Blog2021 (8) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... AND SHRI K.N. CHARY, JUDICIAL MEMBER Appellant by : Sh. V.P. Gupta, Adv. Sh. Anunav Gupta, Adv. Respondent by : Sh. Gaurav Pundir, Sr.DR ORDER PER O.P. KANT, AM: This appeal filed by the assessee is directed against order dated 07/09/2017 passed by the learned CIT (Appeals)-38, Delhi [in short the Ld. CIT(A) ] for assessment year 2013-14, raising following grounds: 1. That the CIT(A) erred in upholding addition of ₹ 24,22,248/- made by the Assessing Officer i.e. 2% of ₹ 12,11,12,443/- without correctly appreciating the facts of the case and the submission made before CIT(A). 2. That the CIT(A) failed to appreciate that the allegation made by the Assessing Officer that the transactions relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee submitted that assessee is one of the members of the Tarun Goyal Group, wherein the Tribunal in ITA Nos. 6507/2015 Ors. (Adonis Financial Services Pvt. Ltd. Ors.), vide order dated 23.01.2019, restricted the rate of the commission on accommodation entries at the rate of 0.50% or 0.50 paise of the sale transaction. Accordingly, he submitted that in the case of the assessee also rate of the commission may be determined accordingly. 4. The learned DR, on the other hand, submitted that Assessing Officer has invoked the rate of 2.25% based on the seized document whereas the Tribunal has applied the rate of commissioner arbitrarily without any documentary evidences. 5. We have heard rival submission of the parties on the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven if we proceed on the assumption that the entries made in MR 71/91 are correct and the entries in the other books and loose sheets which we have already found to be not admissible in evidence under Section 34) are admissible under Section 9 of the Act to support an inference about the formers' correctness still those entries would not be sufficient to charge Shri Advani and Shri Shukla with the accusations levelled against them for there is not an iota of independent evidence in support thereof. In that view of the matter we need not discuss, deleve into or decide upon the contention raised by Mr. Altaf Ahmed in this regard. Suffice it to say that the statements of the for witnesses, who have admitted receipts of the payments as show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 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, 17. We are of the opinion that there cannot be any profit element in intra-group transactions. We, therefore, direct the Assessing Officers to consider the transactions with outside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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