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2016 (2) TMI 297 - AT - Income TaxDisallowance of claim of discount to customers on sale of two wheelers - Held that:- The genuineness is not established by the evidence that assessee sought to rely upon. We are of the opinion that on the basis of the sample evidences furnished by assessee, in the absence of any policy of discount or acknowledgement by the customers in the invoices, the Modus Operandi adopted by assessee seems peculiar. Therefore, in the interest of justice, we are of the opinion that the claim of discount is required to be examined fully and if necessary by detailed enquiries by the Department on the basis of the evidence available on record. If assessee is not in a position to substantiate the claim, AO is free to examine whether the same Modus Operandi is followed in earlier years or in later years and can examine the current customers whether any discount is genuinely offered by assessee on each and every motorcycle being sold. Only after proper enquiries and satisfying, whether assessee's claim of discount is genuine or not, the claim can be allowed. Decided in favour of assessee for statistical purposes.
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