Commission Agent Relief

The Mumbai Bench of the Income Tax Appellate Tribunal has held that turnover of a commission agent cannot be determined merely on the basis of APMC cess paid on consignment sales. 

The Tribunal affirmed that consignors' sales cannot automatically be treated as the assessee's own turnover merely because the assessee, acting as a Del Credere Agent, pays market cess. 

At the same time, it restored issues relating to sundry debtors and creditors for fresh verification and upheld the addition towards unexplained loans and advances due to the assessee's failure to substantiate the balances.