2025 (8) TMI 373

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....074621147(1) dated 18.03.2025 for the A.Y.2022-23 arising out of the order passed under section 143(1) of Income Tax Act, 1961 (in short 'Act') dated 17.02.2023. 2. Brief facts of the case are that, assessee is an individual and carrying business as a commission agent by selling chillies on behalf of farmers under the name and style of M/s. Tejaswi Trades to registered dealers (GST Dealers). Assessee filed the return of income for the A.Y. 2022-23 on 06.09.2022 admitting a total income of Rs. 10,51,480/-. A defective notice under section 139(9) of the Act dated 11.11.2022 was issued to the assessee by the Income tax Authority, CPC, Bangalore. In response, assessee has submitted that the Gross commission of Rs. 34,49,547/- received from f....

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.... appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of appeal." 5. At the outset, the Ld. Authorised Representative [hereinafter "Ld.AR"] submitted that the assessee is only a commission agent and therefore the total gross sale proceeds cannot be treated as the income of the assessee and thereby the Ld. Revenue Authorities have erred in applying the Rule-37BA of the Income Tax Rules, 1962. The Ld. AR also submitted that as per the Circular No.452, dated 17th March, 1986 issued by the Central Board of Direct Taxes [CBDT] the actual turnover of the Kaccha Aarahtias is the commission charged and it does not include the sales affected on behalf of the principals. The Ld.AR strongly relied on the Bo....

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....aders vs. ITO in ITA No. 39/Viz/2024 (AY 2022-23) dated 18.03.2024. For the sake of reference, the relevant Paras 5 & 6 of the Tribunal's order dated 18.03.2024 (supra) are extracted herein below: - "5. I have heard both the sides and perused the material available on record as well the orders of the Ld. Revenue Authorities. I have also gone through the CBDT Circular No. 452, dated 17th March, 1986 (supra) relied on by the Ld. AR. For the sake of reference, the relevant portion of paragraph No.4 of the said Circular (supra) is extracted herein below: "4. The Board are advised that so far as kaccha arahtias are concerned, the turnover does not include the sales effected on behalf of the principals and only the gross commiss....