Tribunal Dismisses Appeal; Assessee's Claim as Commission Agent Rejected, Income Assessed Under Sec. 44AD at 8% of Turnover.

The appeal was dismissed by the Tribunal, which upheld the decisions of the AO and CIT(Appeals). The assessee's claim of operating solely as a commission agent was rejected due to insufficient evidence, and the Tribunal agreed with the conclusion that the assessee was engaged in trading activities. The income was assessed under Sec. 44AD at 8% of turnover, with an additional Rs. 3,91,016 added to the returned income. The Tribunal also noted that the failure to consider the written submission did not affect the outcome, as the primary issue was the nature of the business activity.

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Issues Involved:
The appeal filed against the order passed by the Commissioner of Income-Tax (Appeals) arising from the order under Sec. 143(3) of the Income-tax Act, 1961 for the assessment year 2015-16.

Issue 1: Nature of Business Activity
The assessee claimed to be working as a Commission Agent, disputing the Assessing Officer's conclusion that the assessee was engaged in trading of vegetables. The AO determined income under Sec. 44AD @8% of turnover, adding Rs. 3,91,016 to the returned income. The CIT(Appeals) upheld the AO's decision based on the assessee's direct involvement in purchase/sale transactions and depositing cash sale proceeds in its own bank account. The appellant's failure to substantiate the claim of working solely as a commission agent led to the rejection of the said claim.

Issue 2: Consideration of Written Submission
The assessee contended that the CIT(Appeals) erred in not considering the written submission filed before passing the order. However, the failure to address this submission did not impact the final decision, as the core issue revolved around the nature of the assessee's business activity and not procedural irregularities.

Separate Judgment:
The appeal was dismissed as the assessee failed to establish itself as a commission agent and the evidence pointed towards engaging in trading activities directly. The Tribunal upheld the lower authorities' decision, emphasizing the importance of substantiating claims and conducting business transactions in alignment with the purported role.

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