2014 (5) TMI 1177

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....grawal, VP : This appeal by the Revenue is directed against the order of learned CIT(A)-XIII, New Delhi dated 16th March, 2012 for the AY 2007- 08. 2. The Revenue has raised the following ground of appeal:- "On the facts and circumstances of the case and in law, the ld.CIT(A) has erred in deleting the addition of Rs. 49,20,000/- made on account of disallowance of trade discount." 3. We have ....

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....udgment read as under:- "11. Lastly, we fail to understand how the provisions of section 40A(2)(b) are, at all, applicable in the facts of the present case. Section 40A(2)(a) runs as under :- "(2)(a) Where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person referred to in clause (b) of this sub-section, and the Assessing Officer is of opinion....

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.... there has to be an expenditure incurred before the provision can be said to be applicable. A trade discount, and admittedly it is not in dispute that the subject-matter of the claim is a trade discount, and not an expenditure, clearly therefore there does not arise the question of applicability of section 40A(2)(b)." 5. The ratio of the above decision would be squarely applicable to the case bef....