Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 106 - CALCUTTA HIGH COURTRevision u/s 263 - expenditure on commission on sale - Held that:- Discount allowed to wholesale dealers from the listed retail price and commission paid to the selling agents did not come within the purview of Section 37(3A) inasmuch as trade discount merely represents lesser realisation of the sale price itself and the commission paid to selling agents are actual selling expenses. The order of assessment has considered disallowance under Section 37(3A), dealt with it elaborately and has given reasons for its findings. The revisional authority is incorrect when it say that the assessing officer did not consider disallowance under Section 37(3A) of the Income Tax Act, 1961. The first ground in the impugned notice is not available to the department to claim that, there is an error of assessment and that, the same has resulted in prejudice to the department. Question of disallowance under Section 37(3A) in the present case, it appears that, the jurisdictional facts required for the purpose of the revisional authority to invoke jurisdiction under Section 263 of the Act of 1961 were not present. In fact, as on the date of issuance of the notice, the second ground based on Shri Shubhlaxmi Mills Ltd. (1989 (3) TMI 2 - SUPREME COURT) may have been available to the revisional authority. However, the subsequent amendments to Section 37(3A) with retrospective effect, took the same way also. As the writ petition is pending since 1990, no useful purpose would be subserved by requiring the petitioner to reply to the show cause notice for the purpose envisaged under the Act of 1961 to decide thereon.
|