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2012 (12) TMI 698 - AT - Income TaxTransactions as principal to principal - direction to get his books of accounts audited under section 44AB - kachha arahtia or pacca arahtia - the assessee being only a commission agent (buying agent) - Held that:- As in a case of agent whose position is similar to that of a kachha arahtia, the turnover is only the commission. However, in the case of pacca arahtia, the commission as well as other turnover shall be taken into account for applicability of provisions of section 44AB. The prescribed rate of commission a 2.5% for kachha arahtia and rate of 1% (variable) for pacca arahtia There is no dispute to the fact that the appellant is registered as pacca arahtia with the market committee, Palwal & has charged commission at the rate of 1% only on the sales. The appellant has sold good to the constituents after purchasing them from kachha arahtias after paying commission of 2.5%. Also the appellant has made payments to the kachha arahtias on his own account and received payment from the buyers on his own account. The transactions of purchases and sales as well as payments are duly recorded and routed through the books of accounts of the appellant. The appellant has nowhere been able to demonstrate that the goods sold to outside parties were in fact belonged to or owned by the principals or farmers. Rather, the appellant has sold the goods to outside parties after purchasing them on his own account from the kachha arahtia and the domain over the goods sold was that of appellant. Thus once the status of appellant is established to be so, the entire receipts including commission are to be considered for the purpose of applicability of section 44AB. Admittedly, the receipts of the appellant far exceed the limits prescribed u/s 44AB and the appellant was liable to get his books of accounts audited u/s 44AB. The turnover of Rs.1,46,27,433/- as shown in the sales tax return has to be considered as turnover of the appellant and not the commission of Rs.1,33,270/- only - against assessee. Invoking the provisions of section 194H making him liable for TDS from commission payments and invoking the provisions of section 40 (a)(ia) - Held that:- As concluded by the Hon’ble High Court, there is no res judicata, as regards assessment orders, and assessments for one year may not bind the officer for the next year. Since in the preceding year, no such facts ,as have been revealed in the year under consideration, emerge from the records, considering the totality of facts and circumstances of the case, especially when the assessee on behalf of the assessee did not place any material before us that the assessee was only a kutcha arahtia even while being registered and acting as pucca arahtia, there is no basis to interfere with the findings of the CIT(A). Moreover, the CIT(A) upheld the findings of the AO that the commission exceeding Rs.2,500/- in each case aggregated to Rs.3,04,511/ - and the provisions of sec. 194H are applicable in the case - against assessee.
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