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2016 (1) TMI 250 - AT - Income TaxDisallowance of discount on sale of car to various customers - Held that:- It is a normal practice in the business of selling new cars by the dealers of the car to grant discount in order to off-load stock and also to meet the target fixed by the manufacturers of the car. The discount is offered according to the market trends, competition by the other car manufacturers and also due various other marketing strategy and financial policies of the assessee. It is the prerogative of the assessee to decide as to how it has to conduct its business in order to survive and flourish in the market which cannot be questioned by the Revenue. The Revenue cannot dictate terms to the assessee on the issue of granting discount and making disallowance unless the genuineness of the transactions is doubted or established to be sham. In the given case before us that the assessee had granted discount to various customers on the sale of several model of the cars traded by the assessee. These transactions cannot be held as sham or not genuine. The Revenue has not brought out any convincing reasons to treat these transactions as not genuine. Therefore, we do not subscribe to the view of the Revenue for making such disallowances. - Decided in favour of assessee
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