Consistent estimation of commission income from agricultural sale proceeds led to a lower rate being applied on similar facts.

Commission income from cash deposits accepted as sale proceeds of agricultural produce was not disputed on characterisation; the only question was the proper estimation rate. Where the assessee's immediately preceding year on similar facts had been assessed at a much lower commission rate, consistency in the assessee's own case justified adopting the same approach absent new material. On that basis, the income element from the deposits was held reasonably estimable at 1% rather than 15%, and the higher estimation was reduced accordingly in favour of the assessee.

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Issues: Whether the commission income arising from cash deposits treated as sale proceeds of agricultural produce should be estimated at 15% or at a lower rate in view of the assessee's past assessment.

Analysis: The cash deposits were accepted as sale proceeds of agricultural produce earned by the assessee as a commission agent, and that factual characterisation was not challenged further. The only surviving dispute was the rate at which the income element was to be computed. In the assessee's immediately preceding assessment year, on similar facts, the income from the same activity had been accepted by the Assessing Officer at a much lower commission rate. Applying a consistent approach to materially identical facts, the income from the impugned deposits was held to be reasonably estimable at 1% of the deposits, instead of 15%.

Conclusion: The higher estimation of commission income at 15% was reduced to 1%, and the issue was decided in favour of the assessee.

Ratio Decidendi: Where identical facts are found in the assessee's own case for an earlier year, the income element from the same source should ordinarily be estimated consistently unless a departure is justified by new material.

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