2017 (2) TMI 1082

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....e is that the Ld. CIT (Appeals) erred in confirming the disallowance of special discount of Rs. 5,79,940/- on the ground that the same is not claimed by filing revised return and claimed by way of a letter during the course of assessment proceedings. 3. Briefly stated the facts are that the issue of allowability of claim for special discount of Rs. 4,75,161/- and Rs. 5,29,570/- came up before the tribunal and the tribunal by order dated 25.11.2011 in ITA 3464/Mum/2010 disposed off the appeal with the following observations. "6. We have considered the issue and rival submissions. As seen from the documents placed on record, there seems to be special discount scheme allowing additional discount on the turnover to various customers. Addition....

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....sessee has indeed formulated the scheme for the special discount and how the liability arose to the assessee. Considering the income declared by the assessee, the additional discount seems to be small percentage but the claims are to be examined properly by the Assessing Officer. Therefore, we are of the opinion that the issue can be restored to the file of the Assessing Officer who should examine these aspects, without prejudice to the stand already taken by him and determine the claims afresh and decide accordingly. Therefore, the orders of the Assessing Officer and CIT (A) to that extent are set aside and matter restored to the file of the Assessing Officer. The Assessing Officer is free to make necessary enquiries and the assessee is fr....

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....ders Pvt. Ltd (349 ITR 336). Therefore he submits that in view of this decision, the claim of the assessee should have been allowed by the Ld. CIT (Appeals). 6. The Ld. DR supported the orders of the lower authorities. 7. We have heard the rival submission and perused the orders of the lower authorities. From the record and the tribunal order, we find that the assessee claimed special discount of Rs. 4,75,161/- stated to have been paid in assessment year 2006-07 and an amount of Rs. 5,79,940/- paid in assessment year 2007-08 claimed as deduction before the assessing officer as pertaining to the assessment year under consideration i.e. 2005-2006. We find the reason for the claim is on the basis that the assessee allowed special discount of....

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.... holding that since the claim was not made in the revised return, the same is not allowable. 9. The jurisdictional High Court in the case of CIT Vs Pruthvi Brokers and Share Holders Pvt. Ltd (349 ITR 336) has examined the aspect of the matter as to whether the claim made by the assessee in the course of assessment proceedings but not either in the original return or in the revised return can be entertained by the Appellate Authorities and after considering the decision of the Hon'ble Supreme Court in the case of Goetze (India) Ltd (Supra) held that assessee is entitled to raise not merely additional legal submissions before Appellate Authorities, but is also entitled to raise additional claims before them. Therefore, in view of this decis....