2017 (5) TMI 1623

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....gether. Effective ground of appeal is reducing the estimated addition from 4% to 0.15%. Brief Facts: 2.At the time of search M/s. JIK Industries Ltd. (JIL ) an action u/s.132 was also carried out at the premises of Dilip Jayantilal Shah(DJS) and Rajendra Jayantilal Shah(RJS). In his statement, dated 04.02.2011 DJS admitted that he was authorized signatory of M/s. Chaitali Sales Agency Pvt.Ltd. i.e.,the assessee ,that the company used to issue accommodation entries only. He further admitted to have issued accommodation bills to JIL, and two other companies. He also admitted having received commission for facilitating the bogus sale bills @ 0.02% to 0.01%. Considering the available material, the AO held that the beneficiaries would be rea....

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....s on commissions was far away from reality.It referred to the case of Gold Star Finvest Co., delivered by the ITAT, Mumbai in its support. After considering the submission of the assessee and case of Gold Star Finvest ,the FAA estimated the income of the assessee at 0.15% of the aggregate of the value of accommo - dation entries provided by it.Accordingly, he estimated the income of the assessee for the AY 2009-10 to 2011-12 at Rs. 86,419,5.92 lakhs and Rs. 1.64 lakhs respectively. 4.During the course of hearing before us, the Departmental Representative (DR) relied upon the order of the AO .The Authorised Representative (AR) referred to the case of Gold Star Finvest Pvt. Ltd.(33taxmann.com 129) and Rohit Praveen Panwala (ITA/(SS)/ 608 to....

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....between 0.15% to 0.25%. In the case of Palresha & C o. and Kiran & Co (surpa), the Tribunal has considered reasonablen ess of percentage of commission to be earned on turnover w as at 0.1%. The assessee himself has offered the percentage of commission at 0.15%, which is more than the percentage of commiss ion considered to be reasonable by the Tribunal in the case of Palresha & Co and Kiran & Co (supra) in similar type of tran sactions. The theory of Assessing Officer to treat the entire dep osit as unexplained cash credits, cannot be accepted in the light of as sessment orders in the case of beneficiaries and also in the light of the fact that assessee is only concerned with the commission earn ed on providing accommodation entries. We, th....