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TMI Blog2023 (10) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... es from whom purchases were made from its own bank account. As observed by the A.O and, rightly so, in case the assessee would have rendered services as a commission agent then it would have merely acted as a facilitator and not carried out purchase/sale transactions on its own account. As the assessee had failed to substantiate its aforesaid claim of having rendered services merely in the capacity as that of a commission agent, therefore, the A.O in our considered view had rightly rejected its said claim. Decided against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... y the A.O that though the assessee had ostensibly made a turnover from sale of fruits and vegetables of Rs. 81,39,050/- but had claimed that he had rendered his service as commission agent and was not engaged in any trading activity on its own. However, the aforesaid explanation of the assessee did not find favour with the A.O for two-fold reasons, viz. (i) that the assessee had sold fruits/vegetables directly to parties and had received cash which was deposited in its own bank account; and (ii) that the assessee had paid the purchase consideration to the parties from its own account. The A.O was of the view that in case the assessee would have rendered its services as a commission agent, then, he would have merely acted as a facilitator an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has given money to the parties from its own account against the purchases. While as in the case of commission work, no such activity is done. Had it been commission based work, assessee would have only facilitated the work and doing all the work of trading. Therefore, vide note sheet notings dt 20.10.2017 assessee was asked to explain as to why the work carried out by the assessee be not considered as trading and also since assessee has shown income less than 8% of the turnover why penalty u/s. 271 B should not be imposed and income be not held to be 8% of the turnover. On this query, during hearing proceeding on 2.11.2017 though assessee has initially insisted that it was doing the work on commission basis, on being asked as to why purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gaged in the business as commission agent. However, from the assessment order, it appears that sales and purchase of fruits and vegetables were made in the name of the appellant. If the appellant was to be commission agent, the sales and purchase invoice should have been made in the name of owner of the shop not in the name of the appellant. Therefore, it is clear that the appellant is himself engaged in such business. Moreover, in the assessment proceedings, the appellant had accepted to offer the income @8% of the total turnover. Hence, in my considered opinion, there is no need to interfere with the order of the AO. The appeal of the appellant is hereby dismissed." 5. The assessee being aggrieved with the order of the CIT(Appeals) has c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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