Sponsored
    Follow Us:

Case Law Details

Case Name : DCIT Vs Kothari Food & Fragrances (ITAT Lucknow)
Related Assessment Year :
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

The pre-payment discount given by the taxpayer cannot be equated to quantity discount since quantity discount is reduction in sale price. The pre-payment discount was effectively in the nature of interest because it was in consideration of the taxpayer receiving advance payment and to compensate the buyer for making the payment in advance before the sale of goods. Mere nomenclature will not change its character. Section 195 of the Act required the taxpayer to deduct tax from any sum paid to a non-resident which was chargeable under the Act. Th

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

0 Comments

  1. ASHOK SHAH says:

    It appears that learned judge not fails to appreciate the difference between cash discount and interest. “is in the nature of interest” and “interest” per se is totally different in meaning and purport. There is no question of interpretation of any language issue as it is abundantly clear. Question of interpretation and judgement comes into place only when there is ambiguity. We are living in a civilized society driven by rule of law. Where matter is clear then there is no need to interpret “is in the nature of”. Whatever is there in the front is being ignored and whatever is not there is being highlighted by way of interpretation. This is nothing but twisting the law. CBDT should review this judgement and take proper action so that judgement delivered is respected at all level. This is my spontaneous reaction after reading above article.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Ads Free tax News and Updates
Sponsored
Search Post by Date
March 2025
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31