Sravan Kumar Traders Vs ITO (ITAT Visakhapatnam)
ITAT Vishakhapatnam held that in case of licensed chillies commission agent turnover includes only gross commission and not the sales effected on behalf of their principals. Accordingly, credit of entire amount of deducted at source granted.
Facts- The assessee is an individual and a licensed chillies commission agent in Agricultural Market Yard Committee [AMYC], Guntur. The assessee filed its return of income for the AY 2022-23 declaring a total income of Rs. 3,38,520/- wherein the assessee claimed TDS credit for Rs. 60,652/-. Thereafter, AO, CPC while processing the return of income U/s. 143(1) of the Act granted TDS only to the extent of Rs. 3,974/- and disallowed the TDS credit of Rs. 56,678/- and passed the intimation U/s. 143(1) of the Act on 17/02/2023.
Aggrieved by the Intimation, the assessee filed an appeal before Addl / JCIT (A), Vadodara. However the appeal was dismissed. Being aggrieved, the present appeal is filed.
Conclusion- Tribunal in the case of Yegneswari General Traders vs. ITO has held that based on CBDT circular no. 452 it is clear that Kaccha Arahtias turnover includes only the gross commission and not the sales effected on behalf of their principals. In the present case, it is a fact that the assessee is only a licensed commission agent in Agricultural Market Committee Yard, Guntur which is formed under the rules and regulation of the Government of Andhra Pradesh. Therefore, assessee is acted only as an agent (kaccha arahtia) and therefore it is eligible to get credit of the entire amount deducted as tax at source and there is no short fall of TDS as concluded by the Ld. Revenue Authorities.
