TMI Blog2016 (1) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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. - Decided in favour of assessee - ITA No. 2278/Mds./2014 - - - Dated:- 13-11-2015 - A. Mohan Alankamony, AM And Duvvuru RL Reddy, JM For the Appellant : Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easure of business promotion. It was further explained that the sales tax and registration authorities do not permit to invoice the sale of car below the MRP price and hence, on the total MRP price the discount was granted to the buyers of the car. However, the Ld. Assessing Officer rejected the submissions of the assessee by holding that the discounts were not supported by evidence in the form of valid documents and thus the assessee has failed to discharge its onus to prove the claim of discount. 4. On appeal, the Ld. CIT (A) upheld the view of the Ld. Assessing Officer by further reasoning as follows:- i) As per normal accounting practice and standards, there cannot be any discount after the amounts are entered in the books and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant could not mention these discounts in the Invoices since the vehicles were delivered after the sales of the vehicles and in order to avoid paper work problems with the Transport Department namely the Registering Authority (i.e. RTO) and Sales tax department. d) If the vehicles remained unsold, they will become debt stock and the appellant will incur further loss. In order to avoid this situation, therefore it was essential to offer discount to potential buyers who had expressed their desire to buy a car. It was therefore pleaded by the Ld. A.R. that the discount granted to the buyers of the car sold by the assessee may be allowed as deduction. On the other hand, the Ld. D.R argued in support of the orders of the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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