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TMI Blog2016 (3) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... case of contravention of the Rule has also been prescribed. With regard to learned CIT (Appeals) observation that the assessee is not supposed to give unnecessary discounts, we want to state that it is a businessman’s prerogative to run his business the way he wants. The Income Tax Authorities cannot sit in the armchair of the businessman and guide him as to how much of expenditure he should incur. - Decided in favour of assessee. Adition on account of interest - Advances given to staff - business expediency - Held that:- We find ourselves in agreement with the submission of learned counsel for the assessee that the advances given to staff are out of commercial expediency. Once a person is employed in a business, all his family need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery raised by the Assessing Officer with regard to discount allowed to sister concern M/s Whiteflame Advertisement Private Limited. However, the disallowance has been made by the Assessing Officer, ultimately, on the basis of the fact that the discounts were given in violation of terms of guidelines issued by INS. The disallowance has been made indulging in suspicion, surmises and conjectures only. Reliance was placed on the judgment of jurisdiction High Court in the case of CIT Vs. Ram Narain Goel, 224 ITR 180. The learned CIT (Appeals) after considering the submission of the assessee confirmed the disallowance stating that in the presence of specific and clear cut guidelines of INS, there was no reason for the assessee to give such discou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, as shown to us, no discount has been allowed to this company during the year. However, this is also a fact that the Assessing Officer has disallowed the discount claimed by the assessee on the basis of contravention of INS rule. The said rule of INS, as reproduced by the Assessing Officer in his order and also shown to us by the learned counsel for the assessee, during the course of hearing, on perusal of Handbook of INS rules, read as under : The trade discount allowed to the agency by the members shall be retained in full by the agency and shall not be shared or rebated to any other person, firm or company, directly or indirectly except: When an agency rebates full Trade Discount to its clients and is paid a service fee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the above, we direct the Assessing Officer to delete the disallowance. The ground No.1 and 2 of the appeal are allowed. 9. The learned counsel for the assessee preferred not to press ground Nos.3 and 4. Therefore, ground Nos.3 and 4 are dismissed as not pressed. 10. The ground No.5 of appeal is with regard to disallowance of interest amounting to ₹ 67,640/-. 11. The brief facts are that the assessee had given loans to the following persons during the year : i) Smt. Anuradha Rs.2,15,840/- ii) Shri Mahesh Tiwari ₹ 60,000/- iii) M/s Quadrex Marketing Rs.1,30 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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