Summary
- The ITAT Mumbai has ruled that only 1% commission on alleged bogus transactions can be taxed, rejecting the Revenue's claim to tax the entire turnover as income.
- In the case of Empower India Limited Vs ACIT, the Tribunal emphasized that only real income, not artificial transaction values, should be subject to taxation.
- The ruling allows telescoping benefits for previously disclosed income against estimated commission additions, preventing double taxation.
- This decision reinforces that suspicion alone cannot justify taxing entire transaction values and highlights the importance of distinguishing between turnover and actual profits.
Join the discussion — sign up to comment, upvote, and save articles.