ITAT Reduces Commission Income Addition to 0.50%

Nanak Motumal Pherwani Vs ITO (ITAT Surat) In Nanak Motumal Pherwani vs. ITO, the Income Tax Appellate Tribunal (ITAT) Surat addressed the issue of commission income addition based on bank transactions related to cheque discounting and money transfers. The assessee, Nanak Pherwani, filed a return of income for the 2013-14 assessment year. Following a survey of a related entity, Hari Corporation, run by the assessee’s brother, the Assessing Officer (AO) reopened Pherwani’s case. The AO applied a 1% commission rate on total bank credits, asserting it as the income derived from cheque discoun...