TMI Blog2015 (10) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Department with Hon'ble Supreme Court against the order of Hon'ble Allahabad High Court has been dismissed by Hon'ble Supreme Court in limine. Moreover, as per the Hon'ble Supreme Court order in the cases of Vegetable Products [1973 (1) TMI 1 - SUPREME Court] as relied upon by Ld. A. R. in the case of conflicting judgements that judgment is to be applied to an assessee which is beneficial to it. Therefore, we do not see any infirmity in the order of Ld. CIT(A) in this context - Decided in favour of assessee. Addition of rebate and discount - CIT(A) deleted the addition - Held that:- The total amount of goods sold to M/s. B.L. Goyal & Co. during the year under consideration was to the tune of ₹ 3,08,39,874/-, on which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the year under consideration through two proprietary concerns M/s. Delhi Steel and Cement and M/s. Mudit Steels. During the course of assessment proceedings, the A.O. disallowed the interest paid by M/s. Mudit Steels on loan taken from various institutions as TDS was not deducted on payment of such interest. The assessee had debited an amount of ₹ 5,63,654/- as brokerage expenses in the P L account of its two firms. The A.O. disallowed a sum of ₹ 5.25 lacs on the ground that no TDS was deducted and TDS was deducted at a much lower rate. Further the A.O. has disallowed a sum of ₹ 1,05,157/- debited in the P L account of M/s. Mudit Steels as rebate and discount. Aggrieved with the addition, assessee filed appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench of the Tribunal held that Section 40(a)(ia) of the Act was introduced by the Finance Act, 2004 w.e.f. 01.04.2005 with a view to augment the revenue through the mechanism of TDS. On a comparison between the proposed Finance (No.2) bill, 2004 and Finance Act, 2004, it is evident that the legislature has replaced the word amounts credited or paid (as mentioned in the Finance Bill) with the word payable in the final enactment. The Special Bench was of the opinion that such a change was done with a purpose. Thus, intend has been made clear that only the outstanding amount or the provision for expenses (liable to TDS) are to be disallowed in the event of default on complying with the TDS provisions. The disallowances would be applicable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has claimed an amount of ₹ 3,41,871/- under the head Rebates and discount, out of which a sum of ₹ 1,04,757/- (wrongly taken by the A.O. at ₹ 1,05,157/-) pertains to the rate difference in the case of M/s. B.L. Goyal Co. The A.O. has disallowed this amount of rate difference claimed in the account of M/s. B.L. Goyal Co., stating that this amount was written off as bad debts and debited as Rebate discount, which was unjustified and untenable. The appellant has submitted that this action of ht A.O. was purely arbitrary, without understanding the nature of the transaction and its merits. The appellant submitted that ht total amount of goods sold to M/s. B.L. Goyal Co. during the year under consideration was to the tun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble Allahabad High Court decision in the case of Vector Shipping Services has been dismissed by Hon'ble Supreme Court and therefore, the Hon'ble Supreme Court order has become the law on this issue. Without prejudice to the above, it was submitted that in view of Hon'ble Supreme Court decision in the case of CIT Vs Vegetable Products Ltd. 88 ITR 192, the assessee is entitled to application of judgement benefiting to it and therefore Hon'ble Allahabad High Court judgement should be applied to the assessee. 6. As regards the rebate and discounts taken by revenue in the 3rd ground of appeal, Ld. A.R. relied upon the order of Ld. CIT(A). 7. We have heard the rival submissions and have gone through the material placed on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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