TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Allows New Grounds on Price Increase & Dealer Discounts in Appeal</h1> <h3>Hero Moto Corp. Ltd. Versus Addl. CIT, New Delhi.</h3> Hero Moto Corp. Ltd. Versus Addl. CIT, New Delhi. - TMI Issues:1. Admission of additional grounds of appeal regarding deduction of short provision for increase in price of material and discount to dealers under sales promotion schemes.Analysis:1. Deduction of Short Provision for Increase in Price of Material:- The appellant sought to admit an additional ground of appeal related to the deduction of Rs.498.09 lacs for short provision for an increase in the price of material. The negotiation for price revision with vendors is done retrospectively, and the appellant estimated the liability for price revision at year-end. The Assessing Officer disallowed the claim in the subsequent year, stating it pertained to the earlier year. The appellant raised the additional ground to address the situation if the deduction is not allowed in the subsequent year.- The appellant's counsel argued that the claim is as per the consistent accounting method and that the additional ground is raised as an alternative measure. The Departmental Representative objected to the admission of additional evidence, citing the need for a revised return for new claims. The counsel clarified that the occasion for raising the additional ground arose after the assessment order for the subsequent year.- The Tribunal admitted the additional ground, considering that the facts were on record for the subsequent year, and the issue arose due to the assessment order of the subsequent year. Referring to relevant case law, the Tribunal held that it was necessary to consider the question raised by the appellant to assess the tax liability correctly.2. Deduction of Short Provision for Discount to Dealers:- The second additional ground related to the deduction of Rs.619.19 lacs for short provision for discounts to be given to dealers under sales promotion schemes. The appellant provided for the discount at year-end, but the actual amount payable to dealers was found to be higher in the subsequent year. The Assessing Officer disallowed the deduction, stating it did not pertain to the year under appeal.- The appellant's counsel contended that the claim was in line with the consistent accounting method and raised the additional ground as a precautionary measure. The Departmental Representative objected to the admission of the additional ground, arguing that it did not arise from the orders of the lower authorities for the year under appeal.- The Tribunal admitted the additional ground, considering that the issue arose due to the assessment order of the subsequent year. The Tribunal found that the facts were on record for the subsequent year, and the appellant's claim was an alternative measure to address the disallowance in the subsequent year.In conclusion, the Tribunal allowed the admission of additional grounds of appeal related to deductions for short provisions for an increase in the price of material and discounts to dealers under sales promotion schemes. The decision was based on the necessity to consider these claims to assess the tax liability correctly, as the issues arose from the assessment order of the subsequent year.
TaxTMI 