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2018 (2) TMI 1597 - HC - Income TaxReopening of assessment - failure to comply with TDS provisions on commission - Held that:- The Petitioner in its objections to the reasons pointed out that no where in its accounts any amounts have been shown as discounts on sale to its stockists. Thus, the amount of commission being shown as discount does not arise. In fact, it was pointed out that in its Revenue recognition policy as disclosed in its accounts, sales are recognised net of discounts. Thus, no expenditure/deduction is claimed on account of discount in respect of sales of its goods made to its stockists. The aforesaid fundamental objection of the Petitioner on facts has not been dealt by the order disposing of the objections. Thus, rendering the entire process of taking a second look, particularly on facts, before proceeding to reassess, futile. Even before us the Revenue has not been able to show that in its accounts the Petitioner had claimed any amount of expenditure as discount on sales of its products to stockists. All the above is indicative of the absence of application of mind by the Assessing Officer to the tangible material obtained in the form of the order passed by the Deputy Commissioner of Income Tax (TDS). Accordingly, there shall be a stay in terms of prayer clause (d) of the Petition.
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