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2009 (8) TMI 40

..... account of commission. The assessee was asked to justify the payment of such commission alongwith documentary evidence. - Ultimately the AO was of the view that assessing neither filed the details of persons to whom the discount was paid nor furnished any documentary evidence in the shape of any agreement with these persons and disallowed the deduction - The claim of the assessee is that the discount was given to the customers in order to boost the sales of post paid connections due to tough competitions - List of such connections was furnished to the AO – Held that - expenditure are allowed - 445 of 2009 (O&M) - 19-8-2009 - ADARSH KUMAR GOEL and DAYA CHAUDHARY, JJ. Mr. Rajesh Katoch, Standing Counsel for the Revenue. ORDER 1. The Revenue h .....

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..... AT was right in upholding CIT (A) s action in deleting the addition of Rs.8,08,003/- made on account of disallowance of discount debited to P&L Account, ignoring that the assessee had failed to discharge its onus of producing documentary evidence in the form of agreement made with the dealers or to furnish the complete addresses of the dealers together with the percentage of such commission paid, when asked to do so. 2. The assessee deals in electronic items and is distributor of Spice mobile connections. During assessment, the Assessing Officer made additions on account of unsecured loans and other deficiencies including discount debited to P&L account. The CIT(A) upheld the plea of the assessee, which order has been affirmed by th .....

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..... that the payment of commission of the impugned amount to the dealers is provided, on which the necessary tax has also been deducted has not been controverted by the Revenue, consequently, the stand of the learned first appellate authority is upheld, therefore, this round of the Revenue is also having no merit. 5. The last ground raised by the Revenue is that on the facts and in the circumstances of the case the learned first appellate authority erred in deleting the addition of Rs.8,08,003/- made on account of disallowance on discount debited to profit and loss account ignoring the fact that assessee failed to produce documentary evidence in the form of any agreement made with the dealer or to furnish the complete addresses of dealer togeth .....

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..... nt was given to the customers in order to boost the sales of post paid connections due to tough competitions with other companies like Airtel and BSNL etc. who pays sufficient discounts to their customers in the form of free of cost connections or under different schemes. There is no dispute to the fact that the list of such connections was furnished to the Assessing Officer and no independent inquiry was made by the Assessing Officer disapproving the claim of the assessee. Even in the assessment order, the learned Assessing Officer has not controverted that any discount was not given. Even the book result of the assessee has been accepted. Another point pertinent to mention here is that no disallowance was made in earlier years, while fram .....

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