https://www.taxtmi.com/caselaws?id=783674 In assessing a freight forwarding and handling business, the dominant issue was whether the difference between gross receipts billed/collected from customers and income declared could be treated as taxable income. The ITAT held that "real income" comprises only the net service charges retained by the intermediary, since freight components collected are pass-through amounts remitted to airlines/shipping lines and do not represent consideration for the assessee's services. Even on the Revenue's gross-receipt approach, the corresponding freight remittances evidenced on record had to be allowed, and the addition could not be sustained merely because such freight payments were not debited in the P&L. The ITAT therefore affirmed the CIT(A) and rejected the addition. en-us Wed, 10 Dec 2025 00:00:00 +0530 Thu, 14 May 2026 11:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783674 In assessing a freight forwarding and handling business, the dominant issue was whether the difference between gross receipts billed/collected from customers and income declared could be treated as taxable income. The ITAT held that "real income" comprises only the net service charges retained by the intermediary, since freight components collected are pass-through amounts remitted to airlines/shipping lines and do not represent consideration for the assessee's services. Even on the Revenue's gross-receipt approach, the corresponding freight remittances evidenced on record had to be allowed, and the addition could not be sustained merely because such freight payments were not debited in the P&L. The ITAT therefore affirmed the CIT(A) and rejected the addition. Case-Laws Income Tax Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783674