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TMI Blog2012 (8) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... siness strategy adopted to meet the market conditions. The companies do not offer discounts on adhoc basis. The amount was substantial and could not be given on adhoc treatment at the time of assessment. Matter restored to the file of AO to conduct enquiry - Decided in favour of Revenue. - INCOME TAX APPEAL NO. 42 OF 2002 - - - Dated:- 6-8-2012 - Sunil Ambwani, Aditya Nath Mittal, JJ. 1. This appeal relates to income-tax assessment of M/s Modi Zerox Ltd-a company incorporated under the Companies Act, 1956 for the assessment year 1996-97. The appeal was admitted on 25.7.2007, on the questions of law as follows:- "1. Whether on the facts and in the circumstances of the case, ld. ITAT is legally justified in deleting the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80HH is allowable with respect to the profit of two profit making industrial units only and holding that loss of third unit is to be ignored?" 2. Shri R.K. Upadhyay, learned counsel appearing for the revenue and Shri R.R. Agarwal, learned counsel appearing for the respondent-assessee, agree that question nos. 1, 2, 3 and 5 are covered by the decision of this Court between the same parties in CIT another vs. Modi Xerox Ltd (ITA No. 30 of 2001) decided on 15.4.2010. 3. In the assessment year in question the assessee had debited a sum of Rs. 9, 09, 92, 266/- as against Rs. 4, 76, 68, 948/- under the head discounts. It was asked to explain by notice dated 3.12.98 as to why disallowance in the earlier years may not be made for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to examine the claim on actual basis. For the relevant year also the CIT (A) restored the issue to the file of AO. 6. The ITAT, dealing with the point and issue, held in paragraph-14 of its order, as follows:- "14. We have heard the rival parties and are of the opinion that the discount claimed is as per vouchers and books of account which are duly audited by the competent auditors. We, therefore, feel that no rough and short method of estimate can be applied to these facts. The AO/CIT(A) has not found fault on actual allowance of discount. We, therefore, direct that in the absence of any defect in the actual amount claimed and the defect found in the invoices on the basis of which discount claimed by the appellant, the total claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R.K. Upadhyay, that as in the previous years the burden was on the assessee to satisfy the AO, by placing before him the scheme of the company for offering discounts, and to give the details of addresses of the purchasers, who were offered discount to make an enquiry. The scheme of discounts, or the policy of the company was not produced. The argument was only based on the percentage of discounts and the small increased in fraction to be considered on approximate basis. 10. It was not denied that the discounts were offered as in previous years in accordance with the scheme based on the policy of the assessee-company. The company was required to produce the scheme as well as the addresses of the purchasers to make an enquiry and to verify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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