1997 (5) TMI 6

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....ome-tax, Jodhpur. The Assessing Officer allowed the following expenses which were shown in the return of income of the assessee-Digvijay Textiles, Jodhpur: Rs. "(1) Advertisement expenses 12,454 (2) Commission paid to selling agent 5,17,107 (3) Sales incentive 96,060 (4) Cash discount 8,99,490 --------- Total : 15,25,111 --------- Later on, on a perusal of the records, the Commis....

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....within the purview of section 37(3A) of the Income-tax Act, in view of the decision of the Calcutta High Court in CIT v. Hindusthan Motors Ltd. [1991] 192 ITR 619. As regards the sales incentive, it has been held that it is neither an extravaganza nor a wasteful expenditure and hence cannot be subjected to partial disallowance under section 37(3A) of the Income-tax Act. Similarly, the cash discoun....

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....x Appellate Tribunal's observation that the expenditure is neither an extravaganza nor a wasteful expenditure is relevant? (3) Whether the Income-tax Appellate Tribunal is justified in not upholding the Commissioner of Income-tax action under section 263 on all the points in spite of the fact that the nature of all the expenses was only to boost the sales, so these were clearly covered under sect....