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Facts
The assessee-appellant, Sh. Mangi Lal Mohta, is engaged in the business of trading agricultural commodities and claims to also operate as a commission agent. The Revenue contended that the assessee is primarily a trader and not a commission agent, and that income derived from commission agency activities cannot be segregated from trading income. The appellant relied on a document from 1997 permitting trade and a prior tribunal decision.
Held
The Tribunal noted that the document from 1997 indicated permission for trade as a "Joint" trader, and the categories for commission agent were struck out. Furthermore, the assessee's income as a commission agent could not be clearly deciphered or segregated from trading income in the ITR and other submissions. The Tribunal found that the CIT(A) had not properly verified or discussed the material submitted by the appellant.
Key Issues
Whether the appellant is a trader or a commission agent, and if both, whether the income from commission agency can be segregated from trading income.
Sections Cited
250 of the Income Tax Act, 1961, 143(1) of the Income Tax Act, 1961, 194J, 194Q, 37BA, Rule 69/72 of Rajasthan Agricultural Produce Market Rules, 1963, Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963
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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR.
Before: Dr. M. L. MEENA & SHRI NARINDER KUMAR
As a result, in view of the above discussion, this appeal is disposed of for statistical purpose and matter is remitted to the Assessing Officer for decision afresh, by adjudicating all the relevant issues, and while providing an opportunity of being heard to the assessee. Judicial Member having joined and presided over through virtual mode from Jaipur Benches, order needs pronouncement under Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 by placing the details on the notice board. File be consigned to the record room after the needful is done by the office.