9911796707
TMI Blog2020 (5) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... aw:- "Whether the finding of the lower authority that the assessee is not entitled to the deduction claimed for allowing discount to the customer as it is disproportionately higher to the percentage of discount granted in earlier year though there is increase in the turnover and the rate of tax paid, is perverse and arbitrary?" 2. The case leading to filing of this appeal briefly stated are that the appellant is the partnership firm engaged in the business of selling TVS Mopeds, Bikes and spare parts and servicing of vehicles. The appellant filed the return of income on 01.11.2004 for the Assessment year 2004-05 declaring income of Rs. 42,57,690/-. The case of the appellant was selected for scrutiny and the Assessing Officer also issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopted and the Assessing Officer grossly erred in disallowing the amount in question on ad-hoc basis, while taking comparison with the earlier year. It is also submitted that there is nexus between the expenditure and the purpose of business and the Revenue cannot claim to put itself in the arm-chair of the businessman. It is also submitted that the reasonableness of the expenditure could be gone into for the purpose of determining whether the amount was spent. It is also contended that there is nexus between the expenditure and the purpose of business. In support of his submission, the learned Senior counsel for the appellant has placed reliance on the decision of the Supreme Court in the case of Sassoon J. David and Co. Pvt. Ltd., vs. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee and see how a prudent businessman would act. 8. In the instant case, from perusal of the order of assessment, it is evident that the Assessing Officer has not doubted the books of accounts of the appellant. The Assessing Officer has held that there is nothing on record to say that assessee was adopting any uniform policy in respect of discount and it was being given in the uniform way to the customers. Therefore, the amount on account of discounts and rebates has been disallowed. Similarly, the Commissioner of Income Tax (Appeals) has held that the burden of proof lies on the assessee in order to claim that the expenditure falls under Section 37(1) of the Act. Therefore, it has been further held that the claim of the assessee under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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