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2023 (10) TMI 685 - ITAT RAIPURDetermination of income - Commission income or trading activity - addition to the returned income by taking 8% net profit on turnover - as per AO assessee was engaged in the business of trading of vegetables and fruits and determined its income u/s.44AD @8% of the turnover - HELD THAT:- Assessee had admittedly carried out purchase/sale of fruits and vegetables in its own name and had deposited the cash sale proceeds in its own bank account. Apart from that the purchase consideration was paid by the assessee to the parties from whom purchases were made from its own bank account. As observed by the A.O and, rightly so, in case the assessee would have rendered services as a commission agent then it would have merely acted as a facilitator and not carried out purchase/sale transactions on its own account. As the assessee had failed to substantiate its aforesaid claim of having rendered services merely in the capacity as that of a commission agent, therefore, the A.O in our considered view had rightly rejected its said claim. Decided against assessee.
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