Case Law Details
Euro Home Vs DCIT (ITAT Chennai)
CIT(A) held that the provisions of Sec.44AD would not apply to commission income and the rental income received would be assessed under Income from House Property. Accordingly, the appeal was dismissed against which the assessee is in further appeal before us.
ITAT find that commission income would not come under presumptive taxation. Similarly, interest on deposits would be income from other sources. So far as the exhibition reimbursement is concerned, it appears that the assessee has incurred certain expenditure which has been reimbursed and therefore, the addition of the same as a separate item appear to be not justified. Further, if commission income and interest on deposits are separately added, they would have to be deducted from gross turnover to compute presumptive income. Therefore, I direct Ld. AO to compute correct income of the assessee. The interest on deposit would be income from other sources. The commission income would be added as separate item. However, both these items would be excluded from gross turnover and presumptive income would accordingly be revised.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 13-10-2021 in the matter of an intimation issued by Centralized Processing Center, Bangalore u/s 143(1) of the Act on 18.01.2019. The sole issue under appeal is additions made by Centralized Processing Center (CPC) while processing the return u/s 143(1).
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