Case Law Details
A perusal of the assessment order clearly shows that the Assessing Officer questioned the assessee why there is a difference in the rate of discount. Assessee replied to the questions raised by the Assessing Officer. However, the Assessing Officer has proceeded to compute the discount by hypothetical calculation to arrive at discount rate for the whole year and then asessee applied on monthly sale basis. This obviously is not permissible in so far as the discount granted by the assessee is not a constant every month. The average rate of discount would be a highly impractical method. In the circumstances, the addition in respect of discount as made by the Assessing Officer and confirmed by the learned Commissioner of Income-tax(Appeals) stands deleted.
INCOME TAX APPELLATE TRIBUNAL, CALCUTTA
ITA No.1439/Kol/2011 – Assessment Year: 2001-02
Sri Arun Kumar Paul
-Versus-
Please become a Premium member. If you are already a Premium member, login here to access the full content.
