Provision for discount was an allowable expenditure if based on a scientific method & consistently discharged in subsequent years

PCIT Vs LTI Mindtree Ltd. (Karnataka High Court) Conclusion: Assessee’s claim for this provision had been consistently allowed by the Tribunal in its own case for earlier assessment years and Revenue department could not present any new facts to contradict this established pattern for the current year, therefore, “provision for discount” was an allowable business expenditure under Section 37(1). Held: Revenue filed an appeal under Section 260A challenging the ITAT’s order allowing deduction of provision for discount claimed by the assessee (a software company) for AY 2014-15. AO disal...