https://www.taxtmi.com/caselaws?id=772040 ITAT Mumbai held that no commission income could be presumed against the assessee in circular trading transactions. The AO estimated 3% commission on total sales/purchases while CIT(A) reduced it to 1%. However, since the assessment order of the primary entity involved in circular trading contained no findings of commission payments to the assessee, no addition was justified. The tribunal also deleted adhoc additions on salary and wages, noting the AO failed to identify specific defects in expense verification despite the assessee maintaining substantial turnover in mobile and electronic goods trading. en-us Fri, 30 May 2025 00:00:00 +0530 Tue, 03 Jun 2025 08:50:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772040 ITAT Mumbai held that no commission income could be presumed against the assessee in circular trading transactions. The AO estimated 3% commission on total sales/purchases while CIT(A) reduced it to 1%. However, since the assessment order of the primary entity involved in circular trading contained no findings of commission payments to the assessee, no addition was justified. The tribunal also deleted adhoc additions on salary and wages, noting the AO failed to identify specific defects in expense verification despite the assessee maintaining substantial turnover in mobile and electronic goods trading. Case-Laws Income Tax Fri, 30 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772040