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2011 (12) TMI 105 - HC - Income TaxAddition on account of dis-allowance of cash discount – method of accounting – Held that:- The Assessing Officer took a very myopic view and had opined that the assessee should have followed the “net accounting system” and not “gross accounting system”. - Assessee has right to adopt an accounting system of his choice. - Interference is permissible if the accounting system adopted is contrary to the prescribed accounting standards etc. under Section 145/145A of the Act. - Decided in favor of assessee. In respect of payment of commission assessee has duly established that sufficient services were rendered for the payment of the commission involved in this regard. He has also deducted TDS and filed TDS returns and furnished PAN number of most of the parties. Therefore, expenses are allowed as deduction. - Decided against the revenue.
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