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TMI Blog2002 (9) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... rm "sales promotion" is not to be confused with the sales actually effected. While "sales promotion" are measures taken by the assessee to promote generally the sales of the products manufactured by it, or dealt with by it, individual sales made in the normal course of business on commercial terms either directly to the customer, or through its wholesale and other dealers to whom, under the terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited company engaged in the manufacture of soda ash and ammonium chloride. It had incurred an expenditure of Rs. 9,15,115 in the relevant previous year towards commission and discounts on sales to its dealers. Its claim that that amount is outside the scope of section 37(3A) of the Income-tax Act, inasmuch as commissions and discounts did not amount to sales promotion expense, was negatived by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly refers to an activity which is intended to promote the sale of all the products by way of advertisement or special campaigns. Offering a discount on the price in effect is only an instant of the sale of the company's product at a lower price and cannot be regarded as expenditure on sales promotion." The question referred to us is required to be, and is answered against the Revenue, and in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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