TaxTMI 
TaxTMI 
AO MADE ADDITIONS OF THE AMOUNT ALREADY SHOWN IN PROFIT AND LOSS ACCOUNT UNDER THE HEAD COMMISSION INCOME U/S 68 AND TAXED THIS INCOME U/S 115BBE HOLDING THAT ASSESSEE DO NOT CARRY OUT ANY BUSINESS AND ASSESSEE FAILED TO PRODUCE PERSONS FROM WHOM COMMISSION RECEIVED. DURING THE IMMIDIATLY PRECEEDING YEAR AO HELD THE SAME INCOME AS ASSESSEE'S BUSINESS INCOME. PLEASE ADVISE THE CASE LAWS IN SUPPORT OF ASSESSEE
section 68 and 115BBE
28 Feb 2018 
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Classification of commission income recharacterisation leads to taxation under special provisions when payers are not identified-appeal advised.
Assessing Officer recharacterised commission receipts shown in the profit and loss account as unexplained credits and taxed them under section 115BBE, finding the assessee did not carry on business and failed to produce persons from whom commission was received; this contrasts with the immediately preceding year when the same receipts were treated as business income, and the taxpayer is advised to appeal relying on prior treatment and evidence identifying payers. (AI Summary)
Assessing Officer recharacterised commission receipts shown in the profit and loss account as unexplained credits and taxed them under section 115BBE, finding the assessee did not carry on business and failed to produce persons from whom commission was received; this contrasts with the immediately preceding year when the same receipts were treated as business income, and the taxpayer is advised to appeal relying on prior treatment and evidence identifying payers. (AI Summary)
