2024 (9) TMI 422

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....ves to be quashed. 2. On the facts and in the circumstances of the case and in law the Ld. Addl.//CIT (A)-2 Chennai is not justified in confirming the intimation passed u/s 143(1) of the Act, by the DCIT, CPC Bangalore, who restricted credit of TDS, u/s 194H & 1940 at Rs 34,316/-as against claimed in the return at Rs. 2,96,580/-, by invoking the provisions of rule 378A of Income Tax Rules 1962, despite the fact that the said intimation passed u/s 143(1), does not contain any basis/justification for rejecting the claim of appellant that she (assessee) is a Kaccha Adhatiya (Commission Agent) and filed return of income, on the basis of Adat/Commission received as gross receipt. 3. On the facts and in the circumstances of the case and in la....

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....01/2024, allowed credit of TDS to the extent of Rs. 34,316/- as per the provisions of Rule 378A of Income Tax Rules, 1962, despite the fact that the assessee is a Kachha Artia and not required to disclose turnover on which tax was deducted u/s 1940 of the Act, as mentioned in Form 26AS. Accordingly, entire Adat (Commission) aggregating to Rs. 55,71,380/- was shown in the return of income. Despite the fact that assessee had specifically pleaded that she is running its business in the status of individual as a proprietor of concern namely Satyanarayan Anil Kumar Baran and she had filed her return of income on 25.07.23 where in business code- 09005, relevant to the commission agent was shown and total income was also declared at Rs. 9,18,360/-....

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....ring in the sale invoices are merely sales made against the equal amount of purchase made from the farmers and which cannot be treated, as turnover of the assessee. This being so, the assessee is entitled to credit of tax deducted u/s 194Q of the Act. In support thereof the appellant has also placed on record documentary evidences as under:- (i) Copy of certificate of Krishi Upaj Mandi Samiti, in support of assessee's claim that she i a Registered Kachha Aratiya in Baran Krishi Mandi Samiti. (In the Paper Book-Page No33.) (ii). Copy of CBDT Circular no. 452 dated 17/03/1986 issued by the Central Board of Direct Taxes. (In the Paper Book-Page No. 34-37) (iii) Copy of ITR -AY. 2023-24 and other documents as mentioned in the submission. ....

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....t the assessee raised its invoice to the buyer. Therefore for such type of transactions, the assessee receives Commission on which tax is deducted under section 194H of the Act. Also in some cases buyers deduct Tax u/s 194Q of the Act apart from u/s 194 H and in this regard sample invoices raised by the assessee had also been placed on record. Moreover in support of these above contentions, the Co-ordinate bench in the case of Shri Madan Lal Gupta vs ITO (supra) has already considered the identical circumstances and had categorically held as under:- ''Under these given facts and circumstances, we find that on account of the new amendment brought in section 194Q of the Act the principal of the assessee agent has deducted TDS u/s 194Q of th....