Brokerage Is Turnover, Not Client Trades: ITAT Delhi Deletes 271B Penalty on Sub-Broker

Brijesh Kumar Goswami Vs ITO (ITAT Delhi) Brokerage Is Turnover, Not Client Trades: ITAT Delhi Deletes 271B Penalty on Sub-Broker Delhi ITAT deleted the penalty of ₹1.50 lakh u/s 271B, holding that a share sub-broker’s turnover for the purpose of section 44AB is only the brokerage income and not the gross value of trades executed on behalf of clients. The Tribunal noted that the assessee acted merely as a sub-broker/agent for various main brokers and earned brokerage of about ₹9.70 lakh, while the gross trading value of ₹4.09 crore represented client transactions. The AO and NFAC had l...