Lakshmi Sai Traders Vs ITO (ITAT Visakhapatnam)
ITAT Visakhapatnam held that Kaccha Arahtia turnover includes only the gross commission. Further, entire amount of tax deducted at source is eligible for credit.
Facts- The assessee is a commission agent in Agricultural Market Yard Committee [AMYC], Guntur. The assessee filed his return of income for the AY 2022-23 on 16/09/2022 declaring a total income of Rs. 8,09,145/- wherein the assessee claimed TDS credit for Rs. 1,14,160/-. Thereafter, the Ld. AO, CPC while processing the return of income U/s. 143(1) of the Act granted TDS only to the extent of Rs. 11,172/- and disallowed the TDS credit of Rs. 1,02,988/- [Rs. 1,14,160 – Rs. 11,172] and passed the Intimation U/s. 143(1) of the Act on 17/02/2023.
Aggrieved by the Intimation of the Ld. AO, CPC passed U/s. 143(1) of the Act, the assessee filed an appeal before the Ld. Addl / JCIT (A)-5, Delhi. On appeal, after considering the submissions of the assessee, the Ld. Addl/ JCIT (A), partly allowed the appeal of the assessee. On being aggrieved, the assessee filed the present appeal before the Tribunal.
Conclusion-
Tribunal in the case of Yagneswari General Traders vs. ITO has held 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, the Circular issued by the CBDT (supra) squarely applies to the assessee and hence I am of the view that the 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.
