Brokerage Expenses Validated as Legitimate Business Costs Under IND AS-2, Supporting Normal Selling Operations and Income Generation

ITAT upheld CIT(A)'s order, dismissing revenue's appeal regarding brokerage expenses. The tribunal found that brokerage expenses were legitimate business expenditures paid through banking channels, supported by invoices. The expenses were incurred as selling costs, consistent with IND AS-2, and could not be capitalized. The assessee's books were properly maintained and audited, demonstrating substantial income from business activities. The appellate tribunal concluded that the brokerage payments were normal selling expenses for a large-scale construction business, and therefore, the addition made by the Assessing Officer was unwarranted. .....

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