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2016 (3) TMI 1229 - ITAT CHANDIGARHDisallowance of discounts - Held that:- Self contained code and allowability or non-allowability of any such expenditure are to be looked within the Act itself. There is no provision in the Act to disallow such discount. It is a matter on record that the Assessing Officer has not doubted the genuineness of these discounts. If there is any violation of such Rules, there may be consequential provision in the INS Rules itself, it is not for the Assessing Officer, acting as per the mandate of Income Tax Act, to disallow the said expenses. We also observe that in the same Rule of the INS, in the second part some consequential act in the case of contravention of the Rule has also been prescribed. With regard to learned CIT (Appeals) observation that the assessee is not supposed to give unnecessary discounts, we want to state that it is a businessman’s prerogative to run his business the way he wants. The Income Tax Authorities cannot sit in the armchair of the businessman and guide him as to how much of expenditure he should incur. - Decided in favour of assessee. Adition on account of interest - Advances given to staff - business expediency - Held that:- We find ourselves in agreement with the submission of learned counsel for the assessee that the advances given to staff are out of commercial expediency. Once a person is employed in a business, all his family needs are to be fulfilled from that business only and to retain the staff, business has to extend these kinds of facilities. In view of this the Assessing Officer is directed to delete the addition made on account of interest to these two persons.- Decided in favour of assessee.
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