TMI Blog2017 (11) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... This Court is of the opinion that the Tribunal’s findings cannot be faulted. The interest offering which the assessee emphasises is nothing but an income attributable to the transaction which it had sought to utilize. In the circumstances, the authorities’ decision, therefore, cannot be characterized as erroneous. The provisions of the acts and rules apply in making the adjustments in the present case; the same would apply even in the case of discount for the sale transaction which was undertaken after six months. - ITA 938/2017, C.M. APPL.39852/2017 - - - Dated:- 6-11-2017 - MR. S. RAVINDRA BHAT MR. SANJEEV SACHDEVA JJ. Appellant Through: Sh. Nageswar Rao, Sh. Sandeep. S. Karhail and Sh. Parth, Advocates. Respondent Throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercially prudent arrangement which enabled it to save-up interest and that the other side of the transaction, i.e. sale at a discount of 5% to its AE was a part of normal trade practice. This contention was rejected by the Tribunal. Sh. Nageswar Rao, learned counsel for the assessee made contentions in support of the grounds of appeal. He submits that the judgment in Sumitomo Corporation India Pvt. Ltd. v. CIT 387 ITR 611 has upheld the application of the Berry Ratio which was understood in the circumstances of the present case. It is submitted that the circumstance that the assessee obtained and kept advance consideration for 6 months cannot be held against it as it was part of a commercially prudent decision which enabled it to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applying the most appropriate method selected to benchmark the transaction. 10. In so far as allowing of cash discount is concerned there is no quarrel on the allowability of cash discounts. The Chennai Bench of the Tribunal in the case of M/s. Panasonic Sales services (I) Company Limited Vs. Assistant Commissioner of Income Tax (supra) had accepted the allowability of cash discounts without reducing selling price. The Tribunal in the said case had categorically observed that cash discounts cannot be equated with trade discounts. In the present case, the assessee has admitted that what has been offered to AE is trade discounts. This fact is clearly evident from the perusal of sample agreement placed on record by the assessee at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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