TMI Blog2016 (7) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... is ₹ 56,46,246/-, the turnover of the assessee would be less than ₹ 40 lakhs. As find merit in the case of assessee that the CBDT circular mentioned above provides that in case of agent who was placed as the kaccha arhatia, the turnover would be the commission service charges only and not gross receipt received by the assessee including the reimbursements. The case of the assessee is also supported by the decision of GA Road Carriers [ 2010 (5) TMI 513 - ITAT, HYDERABAD] wherein it has been held that the deduction of TDS cannot lead to conclusion that freight charges constituted assessee s firm turnover or gross receipts. AO has not brought any material on record to prove that the amount received by the assessee as per th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. 4. The return of income was filed by the assessee on 22.12.2008, declaring loss of ₹ 47,848/- which was processed under section 143(3) of the Act. The case was reopened under section 147 and notice u/s 148 was issued to the assessee on the ground that the assessee has shown incorrect receipt in the books of account viz aggregate receipt as per the TDS certificates the assessee has shown gross receipt of ₹ 14,51,994/- instead of ₹ 56,46,246/- as per TDS certificates. Finally, the assessment u/s 143(3) read with section 147 of the Act was completed on 20.12.2011 at a loss of Rs.(-22848/) and penalty proceedings under section 271B was also initiated by the AO for failure to audit account under section 44AB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccha arhatia brings the private contract between customs authorities, dock authorities and shipping line authorities and the importer/exporter. (2) Assessee does not have dominion or any legal title over goods imported or exported. (3) Assessee is agent and at all times transacts with these authorities as clearing agent only and not as owner of goods to be imported /exported. The assessee also relied on the decision in the case of GA Road Carrier V/s ITO (2011) 44DT 145 (Hyd) wherein it is held that deduction of TDS cannot lead to conclusion that freight charges constituted assessee s firm turnover or gross receipts. However, the AO not being satisfied with the submission of the assessee imposed penalty of ₹ 28321/- being % of the tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver of the assessee would be less than ₹ 40 lakhs. We also find merit in the case of assessee that the CBDT circular mentioned above provides that in case of agent who was placed as the kaccha arhatia, the turnover would be the commission service charges only and not gross receipt received by the assessee including the reimbursements. The case of the assessee is also supported by the decision of GA Road Carriers (supra) wherein it has been held that the deduction of TDS cannot lead to conclusion that freight charges constituted assessee s firm turnover or gross receipts. Moreover, the AO has not brought any material on record to prove that the amount received by the assessee as per the TDS certificates were actual turnover of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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