9911796707
TMI Blog2011 (12) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... the nature of cash discount. This addition was made by the Assessing Officer recording the following reasons:- "The reply of the assessee has been considered. It may be mentioned that Trade discounts are generally allowed on catalogue prices. Cash discounts are allowed to give an incentive for prompt payments. These discounts vary from trade to trade and from place to place. It should be seen that such discounts are duly accounted for by the assessee. But, in case of such discounts, the onus is cast on the assessee to ensure that the price entered in the accounts is "net" and not "gross". Similarly, the onus is cast on the assessee to substantiate and prove that full credit for cash discount received has been given by the assessee. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Ld AO to accounting for, on net basis is not practicable as at the time of raising of the bill, the appellant has no information as to who were the customers would be making payment within 60 days and hence the suggestions is not justified. Your reference is invited to p-103/APB-I. In all the cases after deducting CST /ST the appellant has given 2% discount on each payment which can be verified from the confirmation of accounts of M/s Hosiery Linkers." 5. The findings recorded by the CIT (A) and accepted by the Tribunal in view of the stand of the respondent-assessee are findings of fact. The factual position asserted by the assessee was not adverted to and examined by the Assessing Officer in the reasons mentioned above. The Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee company has failed to establish by corroborating and leading evidence as to what actual services were rendered by them for the business. Onus is cast on the assessee to prove that an amount claimed as an expenditure was laid out or expended wholly and exclusively for the purpose of the business and this has not been fortified and proved/discharged by the assessee." 7. The CIT (A) confirmed the said addition holding, inter alia, that there was no material on record to suggest any special job was undertaken to earn the said commission. But the CIT (A) had accepted that there were agreements between the assessee and the agents and the fact of actual payment was established. He disallowed the claim on the ground that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that there is no evidence of rendering the corresponding services by such persons. Accordingly, he confirmed the Assessing Officer's action. 15. Against this order the assessee is in appeal before us. 16. Ld. counsel of the assessee has duly submitted before the Ld. Commissioner of Income Tax (Appeals) that assessee has specified the purpose in which the commission was given, this included (i) procuring sales orders, (ii) promotion of new products and schemes launched, (iii) follow up for collections from the customers, (iv) collection of C-Forms and other statutory documents, (v) settlement of accounts with the customers, (vi) information on competitor activities and (vii) day to day communication. 16.1 In the paper book, Ld. c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... highlighted that out of 16 parties, PAN number of 14 parties were submitted to the Assessing Officer. The respondent has also deducted TDS at the rate of 5% and TDS returns was filed. With regard to the work performed by the agents in paragraph 16 the Tribunal has recorded the submission of the assessee with regard to the nature of work performed. It is noticeable that the Assessing Officer did not issue any summons or call upon the assessee to produce the said agents for examination. Agreements with agents and actual payments were established. The view taken by the Tribunal cannot said to be perverse or something which ignores relevant materials on record or take into consideration irrelevant factors. The view is plausible and not absurd o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
