2015 (6) TMI 790

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....ssee by applying net rate of 2.24% on the gross receipts of Rs. 1,89,10,000/- which was received from M/s PACL India Ltd in the garb of land development expenses. That Ld. CIT(A) erred in deleting the addition made on account of 4% commission on debit and credit entries of Rs. 4,04,98,631/- i.e. 16,99,945/- regarding providing accommodation entries to the above said company. 2. That on the facts and circumstance of the case and in law the Ld. CIT(A) erred in deleting the addition of Rs. 4,28,501/- made in respect of TDS amount claimed from M/s PACL India Ltd." 3. At the outset of hearing the Ld. AR pointed out that the issues raised in the grounds are fully covered by the order dated 18.4.2013 of the Tribunal in the case of assessee grou....

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....ompany is the only actual income of the appellant. The AO has accordingly, added the above amount. The AO has, further, added an amount of Rs. 21,38,280/- being commission at the rate of 4% in respect of the credits and debits in the bank account which are allegedly accommodation entries. In this regard, the ld. AR, apart from making the above submission, has submitted copy of predecessor AO's order wherein he has accepted the results shown by the assessee company except for the vouchers which were not made readily available to the AO at the time of assessment proceedings for the AY 2007-08. The ld. AR has also submitted assessment orders of the other group companies for the AY 2008-09 namely M/s Best Infracon Pvt. Ltd and M/s Best Propmart....

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....ying similar works. In the case of M/s Jatadhari Builders Pvt. Ltd. A.Y. 2007-08, the ld.CIT(A) has restricted the addition to 0.5% and in the case of M/s P.P.Buildmart Pvt. Ltd. A.Y. 2006-07, the ld. CIT(A) has restricted the addition to 2.24%. Further, for AY 2007-08 on identical issues in the case M/s Rishikesh Buildcon Pvt. Ltd, M/s Rishikesh Properties Pvt. Ltd., M/s Rupa Promoters Pvt. Ltd. and M/s RSM Constructions Pvt. Ltd. were deleted by the Ld. CIT(A) and the addition was restricted to 2.24% of the gross receipts shown in the profit and loss account from M/s PACL India Ltd. and Ors., towards commission. 5.2 Considering the above, the addition of Rs. 4,28,501/- can not be sustained. The AO is also directed to delete the addition....