Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 430 - HC - Income TaxBusiness discount claimed at 2.81% of the total sales - partial dis-allowance - revenue contended that following the past history the discount @ 2% of the sale was made admissible for deductions - Tribunal deleted the dis-allowance - Held that:- In order to claim discounts, which had increased for AY in question from 2% to 2.8% and which turned down to Rs 63,59,106/-, the insistence of the AO to verify such discounts by making an independent enquiry was justified. The discounts are offered after the scheme is prepared in accordance with the policy of the company, which may vary from year-to-year and may also depend upon the business strategy adopted to meet the market conditions. The companies do not offer discounts on adhoc basis. The amount was substantial and could not be given on adhoc treatment at the time of assessment. Matter restored to the file of AO to conduct enquiry - Decided in favour of Revenue.
|