6% Discount on sale to independent customers resulting in increase in sales cannot be said to be excessive or unreasonable

The assessee in the present case is a Company, which is engaged in the business of trading in jewellery. The return of income for the year under consideration was filed by it on 01.11.2004 declaring a loss of 1,81,69,142/-. In the said return, a sum of Rs..4,61,883/- was debited by the assessee to the Profit & Loss Account on account of discount allowed.

Since the expenditure claimed by the assessee on account of discount allowed in the immediately preceding year was only Rs.2,089/-, the Assessing Officer required it to ex

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