Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 195 - GUJARAT HIGH COURTDeletion of disallowance of trade discount - associate concern of assessee – Held that:- The Tribunal was rightly of the view that the AO had not specifically mentioned the provisions of Section 40A(2)(b) of the Act - Relying upon CIT v. A. Raman & Company [1967 (7) TMI 2 - SUPREME Court ] - the trader was not obliged to make the maximum profit that he can make out of the trading transactions and avoidance of tax liability by so arranging the commercial affairs if the charge of tax is distributed and is not prohibited - A taxpayer may resort to a device to divert the income before it accrues or arises – By arranging the trading transactions, the assessee Company had arranged to give 2.5% discount to the sister concern - Such facility was also made available to others similarly situated subject to the same rate of tax and there appears no attempt of evading the tax - no substantial question of law arises for consideration – Decided against Revenue.
|