Case Law Details
Komara Gounder Chinnusamy Vs ITO (ITAT Chennai)
The PCIT has revised assessment order passed by the AO u/s.143(3) r.w.s.147 of the Act, on the issue of trade discount received by the assessee from M/s. SKM Animal Feeds and Foods (India) Pvt. Ltd., amounting to Rs.23,16,261/-. According to the PCIT, although, the assessee has received trade discount of Rs.23,16,261/-, but the AO has estimated gross profit of 5.4% on said trade discount instead of making addition towards full amount of trade discount received by the assessee. We find that the assessee has received trade discount from M/s. SKM Animal Feeds and Foods (India) Pvt. Ltd., and argued before the AO that trade discount received from the supplier of feeds, has been passed to the customers while selling the product. The AO after considering relevant submissions of the assessee has estimated gross profit of 5.4% on trade discount received by the assessee. From the above, what is clear that the AO has considered issue of trade discount received by the assessee during the course of assessment proceedings, and has taken one of the possible view. In our considered view, once the AO has taken view on the issue, then there is no scope for the PCIT to substitute his view and direct the AO to make assessment in a particular manner. In our considered view, the issue has been thoroughly dealt with and after being satisfied with the explanation of the assessee, the AO has completed the assessment. Hence, we are of the considered view that the PCIT is completely erred in setting aside the assessment order passed by the AO u/s.143(3) r.w.s.147 of the Act, and thus, we quashed the order passed by the PCIT u/s.263 of the Act.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against the order of the Principal Commissioner of Income Tax, Coimbatore, dated 13.06.2022 and pertains to assessment year 2011-12.
2. The assessee has raised the following grounds of appeal:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
