2021 (3) TMI 924

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..... debit note issued by supplier (GAIL) for purchase relates to F.Y. 2014-15 on account of difference in gas price. Thus, without taking into account, the extra price payable to the gas supplier, the true and fair state of affairs of the assessee society cannot be deduced. Hence, we see no reason to interfere with the tax neutral claim made by the assessee. It is not the case of the Revenue that expenditure is not bona fide and not allowable at all. The expenditure, in view of the AO, is probably allowable in the next assessment year i.e. AY 2016-17 with which we do not concur. The action of the CIT(A) is completely rational and thus endorsed. Decided against revenue.
Rajpal Yadav , Vice President And Pradip Kumar Kedia , Member ( A ) For .....

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..... al consumers and earns commission on CNG. In the course of the scrutiny assessment, the AO observed that a revised return was filed by the assessee wherein deduction of ₹ 7,92,41,327/- was claimed as expenses. To support such claim, it was contended on behalf of the assessee before the AO that as per terms and conditions with supplier GAIL Limited, the gas purchased for domestic customer is to be distributed to the domestic customers only. The purchase price of gas for domestic customer is less as compared to gas purchased for industrial customer. During the year, certain amount of gas purchased for domestic customer was sold to the industrial gas customer. The GAIL Limited worked out difference of gas sold to industrial customer out .....

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..... er out of gas purchased for domestic customer. Therefore, a debit note of ₹ 7,92,41,327/- for gas purchase was issued on 18.11.2015 it pertains to F.Y. 2014-15 and therefore revised return is filed claimed increase in value of purchased of gas and reduced total income to the extent. The A.R. of the appellant vehemently argued that (i) Quantity of domestic gas purchased sold to industrial customer realizing higher price for which GAIL Ltd. issued debit note affecting increase in cost of purchase equivalent to ₹ 7,92,41,327/- on dtd. 18.11.2015. (ii) Board of directors approved and entry made in books of accounts in F.Y. 2015-16 relevant to A.Y. 2016-17. From the copy of return, it transpiration that debit note of ₹ 7,92,41, .....

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