TaxTMI 
TaxTMI 
2021 (12) TMI 501
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....commission income at Rs. 53,91,000/- as against income of Rs. 42,33,526/- determined in the original order of assessment, which order had been subject matter of appeal before the Hon'ble ITAT and was set aside by the Hon'bie ITAT with the directions contained in its order dated 18.10.2013. 2. That the CIT(A) failed to appreciate that in remand proceedings pursuant to order of Hon'ble ITAT income determined in the original not be increased for the obvious reason that the appellant appeal before ITAT against the original order to get relief and the Hon'ble Tribunal could not enhance the amount of income assessed in the order of assessment. 3. That the CIT(A) also erred in upholding determination of commission income at Rs. 5....
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....mall amount could not be applied in all the cases of the Group for determining the rate of commission on total amount of accommodation entries and the notings under reference were also not relevant to all the assessment years. 7. That the CIT(A) also failed to appreciate that in other cases of the group A.O. had determined commission income in remand proceedings @ 2% as against rate of 2.25% determined in original proceedings. 8. That the orders passed by the Assessing Officer and CIT(A) are bad in law and therefore, deserve to be quashed." 3. The assessee is a part of Tarun Goyal Group. The Group was being managed by. Mr. Tarur, Goyal. It is an admitted position that during the relevant previous year Mr. Tarun Goya! wa....
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....015 passed by Assessing Officer pursuant to directions of this Tribunal vide order dated 18.10.2013 passed in 94 appeals of the group, including the appeal of the assessee Company. Accordingly, this appeal is the second round. In the original assessment order dated 30.12.2010 passed by the Assessing Officer, the Assessing Officer had made addition of Rs. 42,33,526/- on account of commission determined with reference to investments made outside the group companies aggregating to Rs. 18.81 crores calculated at 2.25%. The Tribunal had directed the Assessing Officer to re-determine the rate of commission and also to determine commission income, excluding the entries / investment among the group companies as in certain other cases the AOs had al....
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....17). Thus, the Ld. AR prayed that in view of above order of the Tribunal in the cases of the group this bench may be pleased to hold that rate of commission is to be taken at 0.50% and same is to be determined only with reference to transfer / investment entries outside the group of Rs. 18.81 crores as were taken by the Assessing Officer in the original order of assessment. The Ld. AR further submitted that the Department had filed appeal in the case of one of the company of the group, namely, Bhawani Portfolio Pvt. Ltd. in the Hon'ble High Court against the order of the Tribunal dated 23.01.2019 determining rate of commission of 0.50%. The Hon'ble High Court dismissed the appeal of the Department vide order dated 12.07.2021 upholding th....
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....ted 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." The Hon'ble Delhi High Court held as under:- "6. He emphasizes that the ITAT had overlooked the fact that the respondent-- Assessee had admitted to providing accommodation entries. He - a....