2023 (10) TMI 685

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....r 2015-16. The assessee has assailed the impugned order on the following grounds of appeal: "1. That under the facts and the law, the learned Commissioner of Income Tax (Appeals), NFAC, Delhi erred in confirming the observation of the Ld. Assessing Officer that the Appellant was engaged in trading of vegetables rejecting the explanation that he was working as Commission Agent, thereby maintaining the addition of Rs. 3,91,016/- to the returned income by taking 8% net profit on turnover of Rs. 81,39,050/-.Prayed that the Appellant is working as Commission Agent and his income shown at Rs. 2,60,160/-be accepted. 2. That under the facts and the law, the learned Commissioner of Income Tax(Appeals), NFAC, Delhi further erred in ....

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....D @8% of the turnover of Rs. 81,39,050/-. For the sake of clarity the relevant observation of the A.O in the context of the issue in hand are culled out as under: "3. Addition on account of business income- During the course of assessment proceedings assessee has stated that his turnover on sale of fruit was Rs 81,39,050/-but has claimed that he did the work of commission agency and not the work of trading. Vide written submission made on 17.10.2017 assessee has stated that he received fruits from various suppliers in bulk quantity and sold fruits on behalf of suppliers to small retailers in open market. He further stated that the entire sales from the small retailers are in cash and the same cash were deposited into the bank accou....

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.... of the turnover. Thus, considering the above, business of the assessee is held to be trading of vegetables and so income u/s. 44AD is arrived at 8% of the turnover of Rs. 81,39,050/-, which comes to Rs. 6,51,124/-. Since assessee has shown income of Rs 2,60,108/-only, the difference amount of Rs 3,91,016/- (i.e Rs 6,51,124/- less Rs. 2,60,108/-) is added to the returned income of the assessee. Penalty proceedings u/s.271(1)(c) of the I.T Act, 1961 are also initiated as assessee has furnished inaccurate particulars of its income. Penalty proceedings u/s 271B are also initiated as assessee has not got its book of account audited despite the fact that it had shown its profit less than 8%." 4. Aggrieved the assessee carried the mat....

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....peal as per Rule 24 of the Appellate Tribunal Rules, 1963, i.e, after hearing the respondent revenue and perusing the orders of the lower authorities. 6. I have heard the Ld. Departmental Representative (for short 'DR') and perused the orders of the lower authorities. As is discernible from record the assessee had admittedly carried out purchase/sale of fruits and vegetables in its own name and had deposited the cash sale proceeds in its own bank account. Apart from that the purchase consideration was paid by the assessee to the parties from whom purchases were made from its own bank account. As observed by the A.O and, rightly so, in case the assessee would have rendered services as a commission agent then it would have merely acted as ....