TaxTMI 
TaxTMI 
2025 (12) TMI 1284
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....t') dated 25.11.2021 by the Assessing Officer, NFAC, Delhi (hereinafter referred to as 'ld. AO'). 2. None appeared on behalf of the Assessee despite issuance of notice. Hence, we proceed to dispose of this appeal on hearing the Learned DR and based on materials available on record. 3. The only effective issue to be decided in this appeal is as to whether the Learned NFAC was justified in upholding the levy of penalty in the sum of Rs. 1,50,000 under Section 271B of the Act in the facts and circumstances of the instant case. 4. We have heard the Learned DR and perused the materials available on record. The Learned AO observed that Assessee had reported business income of Rs. 3,44,500/- from the gross turnover of Rs. 4,09,34,234/- wh....
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....act as to whether the Assessee had carried out transactions on his own behalf or on behalf of the clients. We find that the Assessee in one of the replies had duly stated that he is engaged in the business of stock and share advisors and earning his income from this activity. We find that the Assessee had also submitted before the Learned CITA that he had simply acted as a sub-broker of the under named share trading brokers for and on behalf of his various clients:- Name of the Broker Stock Turnover Exchange (Rs) Best Bull Stock Trading Pvt Ltd BSE 28,08,325 Best Bull Stock Trading Pvt Ltd NSE 1,74,30,582 Maheshwari Tech & Financial Services Ltd NSE 1,93,14,752 Bonanza Portfolio Ltd ....
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....2. The Board have received representations from various persons, trade associations, etc., to clarify whether in cases where an agent effects sales/turnover on behalf of his principal, such sales/turnover have to be treated as the sales/turnover of the agent for the purpose of section 44AB. 3. The matter was examined in consultation with the Ministry of Law. There are various trade practices prevalent in the country in regard to agency business and no uniform pattern is followed by the commission agents, consignment agents, brokers, kachha arahtias and pacca arahtias dealing in different commodities in different parts of the country. The primary necessity in each instance is to ascertain with precision what are the express terms of....
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.... (3) Though the kachha arahtia does not communicate the name of his constituent to the third party, he does communicate the name of the third party to the constituent. In other words, he is an agent for an unnamed principal. The pacca arahtia, on the other hand, does not inform his constituent as to the third party with whom he has entered into a contract on his behalf. (4) The remuneration of a kachha arahtia consists solely of commission and he is not interested in the profits and losses made by his constituent as is not the case with the pacca arahtia. (5) The kachha arahtia, unlike the pacca arahtia, does not have any dominion over the goods. (6) The kachha arahtia has no personal interest of his own w....