Freight Reimbursements not Taxable as Income: ITAT Deletes Rs. 2.14 Crore Addition

DCIT Vs MKF Logistics Pvt. Ltd. (ITAT Delhi)

ITAT Delhi Deletes Rs. 2.14 Crore Addition on Freight Reimbursements – Real Income Principle Upheld

ITAT Delhi dismissed the Revenue’s appeal and upheld the CIT(A)’s deletion of Rs. 2,14,30,665/-, holding that the AO wrongly treated the “mismatch in sales turnover” as income. The Tribunal noted that in freight/forwarding operations, bills include freight collected and paid, and a major portion represents reimbursement of cost, not income of the assessee. The assessee maintained a separate freight payable

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