Actual turnover of Kaccha Aarahtias (commission agents) is the commission charged and not the total sale proceeds on behalf of their principals: TDS credit allowed by ITAT Visakhapatnam
The Visakhapatnam bench of the ITAT recently delivered a landmark judgment in favor of the assessee, Subba Reddy Maraeddy, a commission agent operating under the name M/s. Amarnath Chillies Traders.
The case revolved around the rightful credit of TDS. Initially, the assessing officer granted only Rs. 3,073, against the Rs. 1,24,286 claimed in the ITR. After the appeal was dismissed by CIT(A), the ITAT stepped in, providing much-needed clarity and relief.
The ITAT relied on CBDT Circular No. 452 (dated 17-03-1986), which states that the actual turnover of Kaccha Aarahtias (commission agents) is the commission charged and not the total sale proceeds on behalf of their principals.
The bench reaffirmed that the assessee, being only a licensed commission agent, should not have the total sales treated as income and directed the department to grant full TDS credit.
Case Reference:
Subba Reddy Maraeddy vs ITO, Dated 25.11.2024
The copy of the order is as under:
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