Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Sales of ‘Kaccha Arahtia’ for Principal excluded from Turnover u/s 44AB: ITAT directs to Credit Entire TDS
The Income Tax Appellate Tribunal (ITAT) directed that sales made by a Kaccha Arahtia (commission agent) for the principal should be excluded from turnover under Section 44AB of the Income Tax Act. The case involved a commission agent who had included sales made on behalf of the principal in their turnover, leading to higher tax liability. The ITAT ruled that such sales should not be considered part of the agent’s turnover and directed the credit of the entire Tax Deducted at Source (TDS) to the agent. This decision clarifies the treatment of sales by commission agents for tax purposes.