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2022 (4) TMI 963 - ITAT CHENNAIReasonable profit estimation on commission income/commission agents - Computation of profits and gains of business on presumptive basis on Section 44AD by applying profit rate @ 8% of total turnover - counsel stated that the net profit or agency commission earned by commission agents dealing in agricultural produce is at 2% - HELD THAT:- Profit rate as mentioned in the provisions of Section 44AD of the Act, cannot be applied to commission agents who are doing business of agency commission or earning commission income only in view of provisions of Section 44AD(6)(iii) of the Act. Hence, as canvassed by ld.counsel for the assessee, a reasonable profit can be estimated. Accordingly, we estimate the profit at the rate of 4% of total credits determined by the AO at ₹ 1,58,01,195/-, after deducting sweep transfers. The AO will recompute the income accordingly. Appeal filed by the assessee is allowed for statistical purposes
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