2010 (11) TMI 451

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....-   1. Both the appeals of the assessee are directed against the common order passed by the CIT(A)-III, Hyderabad dt. 17th June, 2010 and pertain to asst. yrs. 2004-05 and 2005-06. Since common issue arises for consideration in both the appeals, we heard the same together and disposing of the same by this common order.   2. The only issue arises for consideration in both the appeal....

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....d in disallowing the claim of the assessee.   3. On the contrary, Shri Amlan Tripathy, the learned Departmental Representative, submitted that it is for the subscriber of the chit to pay the monthly instalment in time. According to the learned Departmental Representative the assessee is entitled to collect penalty and interest for delayed payment of monthly instalment. Therefore, it is not....

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....ither to levy penalty and interest or to waive the same. Therefore, it cannot be said that the assessee is bound to levy penalty and interest for the delayed payment. The assessee may in its discretion levy penalty and interest as provided under the Chit Fund Act. Therefore, in our opinion, merely because there is an enabling provision in the Chit Fund Act for levy of interest and penalty for dela....

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....if the assessee consciously decides to give 1 per cent discount/rebate, the tax authorities cannot say that it is not necessary for conducting the business. The tax authorities at best can verify whether such discount/rebate was given or not. In this case the discount/rebate given by the assessee is not in dispute. Therefore, in our opinion, the rebate of 1 per cent given by the assessee to the su....