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TMI Blog2012 (7) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... additional grounds - Deduction on account of short provision for the discount to be given to dealers under sales promotion schemes - disallowed as prior period expenditure – Held that:- the additional ground is taken as an abundant precaution so as to take care of a situation that if while deciding the appeal for assessment year 2007-08 the ITAT takes the view that the deduction is not permissible in the year 2007-08, but, permissible in the year in which material was supplied or the vehicles were sold, then, the assessee should be entitled to make the claim in the relevant period i.e., assessment year 2006-07 - additional grounds admitted. - ITA No.5130/Del/2010 - - - Dated:- 28-5-2012 - SHRI G.D.AGRAWAL, SHRI C.M. GARG, JJ. App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such vendors, with the express understanding that the rates would be revised if there is substantial increase in cost of manufacture at the end of the vendor, due to escalation in cost of inputs, etc. On the basis of such rates, the vendors supply the material as per requisition/purchase order placed by the appellant from time to time during the financial year. The prices are renegotiated from time to time depending upon market conditions, like increase/decrease in the cost of steel, other inputs, etc. Since negotiation for price increase/reduction takes time, the price revision is effected retrospectively after the conclusion of the negotiations. While negotiations for price revision are on, the vendors keep on supplying the material prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the second additional ground, it is stated by the ld. Counsel that during the accounting year relevant to assessment year 2006-07, in order to promote the sales of vehicle to dealers, the assessee had introduced certain sales promotion schemes wherein the dealers were eligible for discount on purchase of vehicle from the appellant subject to fulfillment of certain conditions. At the year end, the assessee provided for provision for discount to be given to dealers on such scheme of sales promotion. However, in the subsequent year when the discount payable to dealers were finalized, it was found that the provision for discount to be given to dealers under sales promotion scheme fell short by Rs. 619.19 lac. Therefore, the same was claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 (SC) ii) Atlas Cycle Industries Ltd. vs. CIT Patiala 133 ITR 231 (P H) iii) DCM Benetton India Ltd. vs. CIT 173 Taxman 283 (Del) 5. The learned DR, on the other hand, strongly objected to the admission of additional evidence. He stated that if in assessment year 2006-07 the assessee wanted to make any additional claim which was not made in the return of income, then, the assessee should have filed the revised return as stated by the Hon ble Apex Court in the case of Goetze (India) Ltd. Vs. CIT (2006) 284 ITR 323 (SC). That instead of filing of the revised return the assessee is making the claim by filing the additional ground of appeal before ITAT. Thus, it is trying to surpass the decision of Hon ble Apex Court in a circuitous mann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the argument of both the sides and perused the material placed before us. It is not in dispute that these two amounts were claimed by the assessee in assessment year 2007-08, but the claim was rejected by the Assessing Officer in the order passed u/s 143 (3) dated 4th April, 2012. Copy of the order is produced before us. From the perusal of the order it would be clear that the Assessing Officer disallowed the claim of Rs. 498.09 lacs on the ground that it is a prior period expenditure. Similarly, scheme for short provision for discount given to the dealers is also disallowed mainly on the ground that it pertains to prior period. Therefore, the occasion for raising of the additional ground in the year under consideration arose o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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