TaxTMI 
TaxTMI 
2019 (5) TMI 1268
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....or, Arya Samaj Road, Karol Bagh, New Delhi of 'Tarun Goyal Group' on 15.09.2008. During the search and seizure operation at business premises of Shri Tarun Goyal, certain documents belonging to the assessee company were found and seized. Pursuant to this, assessment proceedings were initiated by issue of notice u/s 153C of the Act and assessment was completed on 20.12.2010 u/s 153C of the Act at an income of Rs. 4,31,270/- by making an addition of Rs. 4,81,500/- on account of unexplained commission and cash credits. The AO noted modus operandi of Shri Tarun Goyal who has floated a number of private limited companies and firms for providing accommodation entries. The Directors of these companies were his employees, who worked in his offic....
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....ined by that assessee. The identity, creditworthiness and genuineness of the creditor have to be proved by that particular assessee and if the same is not proved, addition may be made u/s 68 of the Act. The AO was further directed that he shall after examination of evidence submitted by the assessee, consider all the cases together and restrict the addition u/s 68 of the Act to only peak unexplained credit in each case after eliminating circular transaction. The taxation of same amount multiple times due to chain of transactions involved layering are to be eliminated. For determining the percentage of commission, the material on record and precedence available is to be considered. 3. The AO in view of the directions of the Tribunal taken....
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....for a sum of Rs. 14 lakhs directed to apply commission @ 2% on accommodation entry provided by the assessee and made addition of Rs. 28,000/-. The AO also considered the issue of cash credit and noted that assessee failed to explain unexplained cash deposits in the bank accounts. The Tribunal directed to restrict the addition only to peak unexplained credit but assessee failed to provide any details as per directions of the Tribunal. Therefore, the AO feeling no alternative but to make addition of Rs. 4,50,000/- against the assessee. The Ld.CIT(A) dismissed the appeal of assessee. 4. We have heard Ld. Representatives of both the parties and perused the material on record. 5. On ground nos. 1 to 4 assessee challenged the orders of the ....
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....submitted that since the AO has determined commission income on all deposit entries, therefore, on this addition also commission income may be estimated and suggested that peak addition could be made only for Rs. 2,00,000/-. On the other hand, Ld. DR submitted that assessee failed to comply with directions of the Tribunal earlier, therefore, no interference is called for in the matter. 7. We have considered the rival submission and do not find any justification to interfere with the orders of the authorities below. The ITAT in first round of proceedings directed that credit appearing in the books of each assessee has to be explained by that assessee. The assessee shall have to prove the identity, creditworthiness and genuineness of th....