2018 (10) TMI 984

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... dismissing the appeal of the Appellant is erroneous, illegal and unsustainable in law. 2. The Commissioner (Appeals) erred in sustaining the addition of Rs.l,34,44,000/-being the discount allowed by the Appellant to its customers. 3. On the facts and in the circumstances of the case, the CIT(A) failed to appreciate that the AO allegedly got the inquiry conducted with the customers behind the back of the Appellant and without any intimation to the Appellant, and therefore is improper and legally unsustainable. 4. On the facts and in the circumstances of the case, the authorities below failed to appreciate that allowance of discount in this type of business is normal and is Date of Hearing: 31.07.2018 Date of Pronouncement: 10.08.2018 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s not reflected therein, even though as per the AP VAT Act, 2005 and Sale of Goods Act, 1930, it is mandatory that all discounts and rebates should be mentioned in the invoice. The AO therefore, did not accept the assessee's claim of owners discount given from the gross receipts. Further, the AO also made random enquiries with the buyers as to whether the assessee has given any cash discount and an Inspector from the Office of the AO was also deputed to enquire from few of the customers whether they received any discount. The inspector reported that two customers he met had stated that they have not received any discount and confirmed that the payment was made as per the invoice. The AO also made telephonic calls to few customers who also c....