Undisclosed sales or suppressed income - Genuineness of heavy ...

Court Rules Against Tax Dept: Bulk Discounts to HHPL Valid, No Suppression of Income Found.

September 20, 2023

Case Laws     Income Tax     AT

Undisclosed sales or suppressed income - Genuineness of heavy discount given to certain parties - Addition relating to lower price charged from HHPL as compared from the other parties - any prudent businessman will give heavy discount to a party who has made bulk purchase which is almost ranging from 80%-98%. The department cannot force the assessee that it should have not give discount or should have sold on a higher profit. Decided against revenue. - AT

 

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