ITAT Mumbai Allows Gift Card Discount Claim as Liability Crystallised at Time of Sale

Advertisement DCIT Vs Trent Limited (ITAT Mumbai) In DCIT Vs Trent Limited, the Mumbai ITAT dealt with cross appeals filed by the Revenue and the assessee against the order passed by the NFAC for Assessment Year 2016-17. The disputes mainly related to disallowance under Section 14A, treatment of brand equity fees paid to Tata Sons Ltd., deduction of discounts on gift cards and gift vouchers, and computation of book profit under Section 115JB. The Revenue challenged the relief granted by the CIT(A) in relation to Section 14A disallowance despite the assessee having earned exempt income of on...