TMI Blog2011 (11) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... special discount of `4,75,161/- stated to have been paid in Assessment Year 2006-07 and an amount of `5,79,940/- paid in Assessment Year 2007-08 claimed before the Assessing Officer as pertaining to the impugned Assessment Year 2005-06. The reason for the claim is on the basis that the assessee allowed special discount of 3% to certain customers, if the quantum sale exceeded `5 lakhs during the year April 2004 to March, 2005 and 5% on sales exceeding `10.00 lakhs. Originally the assessee has not claimed the deduction of `4,75,161/- at the time of filing return as this expenditure was claimed in the next financial year. The assessee filed revised return of income claiming the amount as pertaining to the year under consideration. Subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, he rejected the claim on the reason that the disbursal of such ex-gratia payment could not be held to be for business purposes. The assessee is aggrieved and raised the ground claiming not only the amount claimed before the Assessing Officer by filing the revised return but also an amount of `5,29,570/-(erroneously stated as `6,15,516/- in the ground of appeal before the CIT (A)) claimed by way of letter. 3. Drawing our attention to the paper book filed and particularly to page 27, the learned Counsel submitted that the assessee had sole selling agent namely ATE Marketing (P) Ltd who had issued the letter to various customers about the scheme of special discount on the basis of turnover to be achieved in financial year 2004-05 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the paper book pertains to the letter issued by the sole selling agent M/s ATE Marketing (P) Ltd and whether the discount is assessee s liability or that of sole selling agent and what evidence with reference to the entries passed in the books of account was available, the learned Counsel has no objection for proper verification of the above details by the Assessing Officer. 5. Learned Departmental Representative however, objected to the contentions stating that the assessee itself has not claimed the discount on turnover in the books of account in the year itself and this fact indicate that the scheme was prepared subsequently to claim but the same cannot be allowed as deduction of the year. He supported the orders of the CIT (A) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the assessee had filed the revised return to the extent of `4,75,161/- and further claim by way of letter before the Assessing Officer, we are of the opinion that the issue can be reexamined by the Assessing Officer to establish whether the assessee has indeed formulated the scheme for the special discount and how the liability arose to the assessee. Considering the income declared by the assessee, the additional discount seems to be small percentage but the claims are to be examined properly by the Assessing Officer. Therefore, we are of the opinion that the issue can be restored to the file of the Assessing Officer who should examine these aspects, without prejudice to the stand already taken by him and determine the claims ..... X X X X Extracts X X X X X X X X Extracts X X X X
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