https://www.taxtmi.com/caselaws?id=446256 The ITAT Mumbai held that additions made by the Assessing Officer on account of purchase returns and variations in gross profit and net profit ratios were unjustified. The assessee operated as a commission agent for consignment sales, with primary income from commissions rather than trading profits. The tribunal found that since goods were received on consignment basis, the assessee was required to record purchases and sales for VAT compliance but was not the owner of goods. Purchase returns to the consignor were legitimate business practice. The tribunal allowed the assessee's appeal, rejecting the AO's findings regarding the nature of transactions and profit variations. en-us Wed, 25 Oct 2023 00:00:00 +0530 Mon, 27 Nov 2023 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446256 The ITAT Mumbai held that additions made by the Assessing Officer on account of purchase returns and variations in gross profit and net profit ratios were unjustified. The assessee operated as a commission agent for consignment sales, with primary income from commissions rather than trading profits. The tribunal found that since goods were received on consignment basis, the assessee was required to record purchases and sales for VAT compliance but was not the owner of goods. Purchase returns to the consignor were legitimate business practice. The tribunal allowed the assessee's appeal, rejecting the AO's findings regarding the nature of transactions and profit variations. Case-Laws Income Tax Wed, 25 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446256