Case Law Details
M/s. Sai Krishna Agencies Medak Vs Asstt. (ITAT Hyderabad)
We find that the AO had made some enquiries from the customers to find out if they received any discounts from the assessee, but the assessee has not been confronted with the findings of such an ex-parte enquiry report. This is in clear violation of principles of natural justice. The assessee has now filed the confirmation from the parties and also relevant material in support of his claim that he has given cash discount to the customers and his explanation as to why it is not included in the invoices is that Mahindra & Mahindra does not allow such discount to be given and therefore, it could not be included in the invoices, but only to ward off the competition, the assessee was constrained to give the cash discount. We find that this evidence goes to the root of the matter and if it is proved that the assessee has given cash discounts, the same is allowable as expenditure. This material is filed before us for the first time. Therefore, we deem it fit and proper to admit the same and remand the issue to the file of the AO for verification and adjudication in accordance with law. Needless to mention that the assessee should be given a fair opportunity of hearing.
FULL TEXT OF THE ITAT JUDGMENT
This is assessee’s appeal for the A.Y 2014-15 against the order of the CIT (A)-7, Hyderabad, dated 04.12.2017. The assessee has raised the following grounds of appeal:
“1. On the facts and in the circumstances of the case, the order of the Id. Commissioner of Income Tax (Appeals)-7, Hyderabad, dismissing the appeal of the Appellant is erroneous, illegal and unsustainable in law.
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