Discount towards sale of low-quality sponge iron to sister concern duly allowable

DCIT Vs Sunil Sponge Pvt. Ltd. (ITAT Raipur) ITAT Raipur held that addition on account of discount allowed to sister concern unsustainable as assessee duly placed on record documentary evidence to substantiate the factum of having sold low-quality sponge iron to its sister concern. Accordingly, rejection of discount merely on the basis of doubts and suspicion unjustified. Facts- The assessee company, which is engaged in the business of manufacturing and trading of steel items. After the culmination of the original assessment proceedings, AO observed that the assessee company had, during the ye...