Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (11) TMI 451 - ITAT, HYDERABADDisallowance - Rebate given to the subscribers of the chits - Business expenditure or not - Since,to avoid competition and to encourage the subscribers to pay the monthly instalment in time if the assessee consciously decides to give 1 per cent discount/rebate, the tax authorities cannot say that it is not necessary for conducting the business - The tax authorities at best can verify whether such discount/rebate was given or not - In this case the discount/rebate given by the assessee is not in dispute - Therefore, the rebate of 1 per cent given by the assessee to the subscribers for payment of subscription amount in time has to be necessarily considered as business expenditure u/s. 37(1) of the Act - Do not find any reason to disallow the claim of the assessee merely because there is an enabling provision in the Chit Fund Act for levy of penalty and interest for delayed payment of subscription - Decided in favour of assessee.
|