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TMI Blog2016 (1) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) has erred in sustaining the disallowance of discount on sale of car to various customers amounting to Rs. 18,61,507/-. 3. The brief facts of the case are that the assessee is a company, engaged in the business as a dealer of Mercedes Benz car & its spares and accessories, filed its return of income for the assessment year 2007-08 on 22.10.2007 admitting total income of Rs. 64,24,538. Thereafter the case was selected for scrutiny and assessment was completed U/s.143(3) r.w.s 115WE(2) of the Act, wherein the Ld. Assessing Officer amongst one of the disallowances, disallowed the claim of discount granted to the customers of the assessee on the sale of some its cars aggregating to Rs. 18,61,507/-. It was explained by the assessee that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he dealers to grant discount for their products. 5. Before us, the Ld. A.R. reiterated the submissions made before the Revenue authorities and argued by stating as follows:- a) The appellant has entered into an agreement with their principals, namely Daimler Chrysler India for selling Mercedes Benz Cars in India and in the state of Tamil Nadu excepting Coimbatore and Pondicherry. b) As per the agreement, the appellant has to sell the vehicles before the credit period of 37 days given by the appellant's principals namely Daimler Chrysler India as otherwise they will charge interest @ 1.5% per month. c) Therefore, the appellant was forced to borrow monies from the financial institutions and banks in order to discharge this liability to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to decide as to how it has to conduct its business in order to survive and flourish in the market which cannot be questioned by the Revenue. The Revenue cannot dictate terms to the assessee on the issue of granting discount and making disallowance unless the genuineness of the transactions is doubted or established to be sham. In the given case before us that the assessee had granted discount to various customers on the sale of several model of the cars traded by the assessee. These transactions cannot be held as sham or not genuine. The Revenue has not brought out any convincing reasons to treat these transactions as not genuine. Therefore, we do not subscribe to the view of the Revenue for making such disallowances. Hence, we hereby dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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