TaxTMI 
TaxTMI 
2019 (10) TMI 634
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.... addition made by the AO under the head "salary income". 3. Brief facts of the case are that the assessee is a salaried employee of Seashore Agricultural Promotion Company Private Limited and filed his return of income on 31.07.2010 declaring total income of Rs. 4,99,960/-. Thereafter the assessee filed revised return of income on 31.07.2011 declaring total income of Rs. 9,39,360/-. The AO after taking note of the income declared in the original return of income filed on 30.07.2010 and receipt credited to the assessee by his employer the case was selected for scrutiny. Statutory notices were also issued to the assessee. In response to the same, the assessee appeared and filed necessary details as required by the AO during the assessment ....
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....rice, moongdal etc by moving village areas. To carry on the works smoothly the assessee in turn appointed some marketing staff under him at different village areas. They contacted the farmers who help for purchasing their products. For that the assessee had filed a profit and Loss account with regard to commission income. Against commission receipt he had debited expenses incurred under the head salary, meeting expenses, business promotion expenses, travelling, telephone and other expenses related expenses. The assessee also engaged in marketing another product for investment in preferential share for Seashore Security Limited. Again for that work also he has to incur various expenses and engage other staff to convince the respecti....
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.... law that the expenses incurred to earn a particular income is deductable and the net income which is the "real income" which comes to the pocket of the assessee is only taxable. Section. 37(1) of the IT. Act, 1961 reads : - "Any expenditure ( not being expenditure of the nature described in section 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profit and gains of business or profession" Therefore, from the above facts and circumstances of the case it would be clear that the assessee though received his remuneration as....
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....umstances Hon'ble Cuttack Bench of the Tribunal in the case of Jayanti Kumar Mohapatra Vs. ITO in ITA No. 298/CTK/2007 has allowed the expenses incurred by the assessee. The copy of the order is enclosed herewith in page 28 to 30 of the Paper Book. PRAYER Therefore in view of the facts stated above, the appeal of the assessee may kindly be allowed. And for this act of your kindness the assessee as in duty bound shall ever pray. In addition to the above written submission, ld. AR further submitted that the AO has only considered the income from revised return without considering the TDS amount, therefore, total TDS amount as claimed in revised return which is reflected in 26AS also, may kindly be allowed. 7. On the othe....
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....muneration was subject to achievement of target. Therefore, the said receipt in the hands of the assessee is business receipt and not salary as envisaged under the IT. Act, 1961. It is profits and gain of the business or profession which was carried on by the assessee during the relevant year and is assessable u/s 28 of the IT. Act and not salary to be considered u/s. 17 of the IT. Act, 1961. Further the ld. AR submitted that the staff were working for purchase of produce like rice, Mung Dal, Wheat, leaf for rope, coconut from farmers and supply them at cities like Bhubaneswar etc. and they are working for attracting investments in Seashore Securities Ltd. In turn the Company was invested in Floor Mill, Medicine Factory, Diary Farm, Cargosh....