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TMI Blog2021 (12) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... l and is liable to be set aside. 2. The Commissioner of Income Tax (Appeals) failed to note that the Assessing Officer erred in completing the assessment in haste without considering the materials submitted by the assessee in the course of the assessment proceedings. 2.1. The Commissioner of Income Tax (Appeals) erred in confirming the action of the Assessing Officer disallowing the discount granted of Rs. 21,22,807 to M/s. Kankariya Enterprises Pvt. Ltd. 2.2. The Commissioner of Income Tax (Appeals) ought to have appreciated that the discount was allowed for business done by one of the major customers of the assessee and hence it is rightly allowable as expenditure. 2.3. The Commissioner of Income Tax (Appeals) erred in finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT(A). Before the learned CIT(A), the assessee has filed detailed written submissions, which has been reproduced at para 5 on page 3 and 4 of the learned CIT(A) order. The sum and substance of arguments of the assessee before learned CIT(A) are that discount allowed to M/s. Kankriya Enterprises Pvt. Ltd. is on the basis of refund of special addition duty of 4% on import of plastic material and same has been allowed to party when the assessee has received refund from the department. Therefore, argued that even though part of discount pertains to sales made in previous financial year, but same was accrued for year under consideration when the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer has rightly held that prior period expenses cannot be allowed as deduction. The assessee has not given any reason to claim expenditure pertains to earlier year in the impugned assessment years and hence, there is no error in reasons given by the Assessing Officer to disallow discount pertains to earlier financial year and hence, their orders should be upheld. 8. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. There is no dispute with regard to fact that the assessee has allowed discount to M/s. Kankriya Enterprises Pvt. Ltd. and such discount has been allowed on the basis of refund of special additional duty paid on import of plastic raw material. As per agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l duty. Therefore, we are of the considered view that discount allowed to customers on sales made in earlier financial year accrued for year under consideration and thus, same is deductible as and when the assessee has allowed to its customers. Since, the assessee has allowed discount to customers on the basis of refund of duty, and same has been received during impugned assessment year, the assessee has rightly claimed deduction for same in current financial year. The Assessing Officer without appreciating facts simply disallowed discount allowed to customers. The learned CIT(A) without assigning any reasons has simply confirmed additions made by the Assessing Officer. Hence, we direct the Assessing Officer to delete addition made towards ..... X X X X Extracts X X X X X X X X Extracts X X X X
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