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2018 (12) TMI 1130 - AT - Income TaxDisallowance of Discount on sale of flat - Allowable business expenditure - AO disallowed the said discount stating that some of the parties to whom the discount had been given, had informed that no discount received from assessee - Not allowing the assessee to cross-examine the witness by the adjudicating authority - Held that:- The assessee has incurred the said expenses for the purpose of business, therefore, he is eligible to claim the deduction on account of discount allowed on sale of flat. Revenue cannot sit on the arm chair of the business-men and decide how much expenses should be incurred or how much discount should be offered to the customer. Since, some of the customers, who denied that no discount was received by them, does not mean that assessee claim is bogus. AO has not given an opportunity to cross-examine these customers, who denied the receipt of discount. Not allowing the assessee to cross-examine the witness by the adjudicating authority, though the statements of those witnesses were made the basis of the impugned addition, is a serious flaw, which makes the order nullity. See case of Andaman Timber Industries [2015 (10) TMI 442 - SUPREME COURT]. - Decided in favour of assessee.
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