TMI Blog2019 (8) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... been doubted by AO. In the circumstances, the contention that there was no material is wrong. The AO disbelieved the material while the Commissioner and Tribunal believed the same. The view taken by the Commissioner and the Tribunal can not be said to be perverse or based on no evidence - ITA No.266 of 2018 (O&M), ITA No.273 of 2018 (O&M), ITA No.275 of 2018 (O&M), ITA No.300 of 2018 (O&M), ITA No.301 of 2018 (O&M), ITA No.302 of 2018 (O&M), ITA No.303 of 2018 (O&M), ITA No.304 of 2018 (O&M), ITA No.308 of 2018 And ITA No.310 of 2018 - - - Dated:- 22-7-2019 - MR AJAY TEWARI AND MR HARNARESH SINGH GILL, JJ. For The Appellant : Mr. Vivek Sethi, Advocate ORDER AJAY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lected for scrutiny and it was discovered that the purchase bills were prepared by the seller at MRP rates but discount ranging from 10% to 50% was allowed and it was alleged that the Assessee was selling the books on the MRP rates. 6. During the proceedings before the Assessing Officer the Assessee placed some material to substantiate his assertion that he was selling books at a discount. However, the Assessing Officer held against him holding as follows :- 6.2 The assessee is an individual running a business where books and other stationery items are sold on retail basis. He is not running a charitable organization. The assessee though is a member of charitable/religious organization, as an in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has neither been done for the furtherance of business nor wholly and exclusively for the purpose of business. In the course of doing business certain activities are allowed but these should be for the furtherance of business and the expenses should be incurred wholly and exclusively for the purpose of the business or profession. In this case the assessee has failed to establish that this act of charity was on account of business expediency and for the furtherance of business. The assessee has failed to show that the charity was not on his personal account and has miserably failed to show the connection between donation/charity and the business of the retail sale of books to schools. 7. And ultimately held that the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of ₹ 1,51,59,103/- made by the Assessing Officer on account of free distribution of books and on account of discount allowed by the assessee to poor students on the recommendations of various school is directed to be deleted. In the result, ground No.5 of appeal taken by the assessee is allowed. 8. Both the Revenue and the Assessee further filed appeals before the Tribunal. The Tribunal found that the CIT Appeal had allowed relief on account of free distribution of books after getting remand report from Assessing Officer and consequently dismissed the appeals filed by the Revenue and, gave some more relief to the Assessee. The subsequent miscellaneous applications for modification also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f cost price of discounted items, we submit that books and stationery Items are supplied in every year at discount and concessional rates to various needy students of different schools as per the directions of principals of various schools. Further, it is stated all the documentary evidence in the form of recommendatory letters from the principals of various schools for supplying of free books to teachers have already been placed on your file. 6. In the last hearing on 3/3/2014 before your goodself, it was explained that the vouchers where the payment has been made through account payee cheque has not been signed since the payment has been made through a/c payee cheque and other vouchers such as conveyance, telephone, tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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