Fazilka: Arhtiyas irked as ITRs declared 'defective'

Praful Chander Nagpal

Fazilka, November 24

Resentment is brewing among a large number of commission agents (arhtiyas) as the Income Tax Department has reportedly declared their income tax returns (ITRs), filed for the financial year 2021-22, defective for not showing the sale and purchase account of the agriculture produce against which they received the commission. The returns were filed in July.

Sale-purchase record sought

Sources say the I-T Department has issued notices to arhtiyas (licensed commission agents), directing them to submit a reply by November 26 for not showing corresponding sale-purchase account of agriculture produce in their ITRs

Sources said the department issued notices to the ‘kutcha’ arhtiyas (licensed commission agents for agriculture produce) on November 11, directing them to submit reply till November 26 for not showing corresponding sale-purchase account of agriculture produce in their ITRs. As per information, there are 300 commission agents in Fazilka and thousands in the state.

The commission agents maintained that according to the circular issued by the Central Board of Direct Taxes in 1986 it had been clarified that as far as ‘kutcha’ arhtiyas were concerned their turnover/sale did not include sales on behalf of the principal — farmers — and only gross commission had be considered.

Davinder Sachdeva, president, Arhtiya Association, Fazilka, said ‘kutcha’ arhtiyas act only as an agent for his constituent and never as a principal. Sachdeva said they sold farmers’ produce to factories, mills and retailers and in lieu charged 2.5 per cent commission. He claimed that commission agents had nothing to do with profit and loss of their constituent.

Income Tax officials refused to comment on the issue claiming that instructions had come from the central office.

#Agriculture #fazilka