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2018 (2) TMI 1579 - AT - Income TaxDisallowance of discount and commission - Held that:- In the immediately preceding assessment year 2012-2013 5% of discount and commission was disallowed by the AO which was deleted by the CIT(A) on the ground that the disallowance of 5% was without any material or basis. However, as find that in the year under consideration the disallowance was not made on any estimate basis but was made for absence of evidence or details. Therefore, the facts of the instant year is distinguishable from the facts of the preceding years. The assessee submitted before us that after the invoice is raised further discount is allowed to buyers to keep them in good humour and such further discount are debited in the profit and loss account. Thus find force in the above submission of the assessee. But in absence of full details the entire payment of cash and discount cannot be accepted. It shall be in the interest of justice to estimate such cash discount @1% of the sale. - Decided partly in favour of assessee.
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