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2009 (10) TMI 452 - HC - Income TaxBusiness Expenditure- The assessee-company is part of a group engaged in manufacture and export of spices, spices powder, curry powder, etc., under the common brand name “Eastern”. Export is done by the proprietorship concern of the managing director which is located at Okkal in Ernakulam Dist. whereas the assessee’s manufacturing and packing unit is at Adimaly in Idukki Dist. Normal commission paid by the assessee for marketing its products is 5 per cent. However, for the sales effected to the proprietorship concern of the managing director the assessee paid higher discount of 10 per cent. which is double the normal rate. The Assessing Officer noticed that the purpose is to evade payment of tax in respect of 5 per cent. Assessing Officer disallow the 5 percent discount, which was confirmed in first appeal. However Tribunal allow the appeal. Held that- the Tribunal assumed certain facts which was contrary to the facts found by Assessing Officer. Thus remand back the matter.
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